The USA filed a lawsuit against the cryptocurrency exchange KuCoin and its founders. In that case, he accused the exchange and its founders of orchestrating a multibillion-dollar criminal conspiracy. Additionally, the indictment accuses the parties of operating without a license. Additionally, he claims that KuCoin broke anti-money laundering laws to bolster its status.
Billion-dollar accusation against the giant Cryptocurrency exchange!
According to the official statement, KuCoin and its founders Chun Gan and Ke Tang failed to create a solid anti-money laundering program. The crypto exchange also neglected to verify customer identities. In addition, it did not file any reports of suspicious activities. This deficiency in the protocol allegedly positions KuCoin as a conduit for illicit financial flows. These include money from darknet markets and various fraud schemes worth over $9 billion in suspicious transactions. The indictment also details how KuCoin leveraged its significant customer base in the United States to grow into a global trading hub. HSI Deputy Special Agent in Charge Darren McCormack says the following on the subject:
Today, we exposed one of the largest global cryptocurrency exchanges as our investigation revealed what it really was: an alleged multibillion-dollar criminal conspiracy. KuCoin has grown to serve over 30 million customers despite allegedly failing to comply with the laws necessary to ensure the security and stability of our world’s digital banking infrastructure.
What is the basis of the allegations?
Ignoring US laws aimed at combating financial crimes and corruption forms the basis of the charges against KuCoin and its executives, who remain at large. KuCoin entered the market in September 2017. The exchange has rapidly risen to become the largest cryptocurrency exchange. It currently has a daily transaction volume of billions. Despite its success, the indictment alleges that KuCoin and its founders knowingly evaded US regulations. US Attorney Damian Williams makes the following allegations:
As alleged, by failing to enforce even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadow of financial markets and be used as a haven for illegal money laundering; KuCoin received more than $5 billion and sent more than $4 billion in dubious and criminal funds.
The USA increases the pressure on the cryptocurrency market!
The accusations against KuCoin and its founders are important as they indicate a decisive step taken by the US authorities. The United States is struggling to curb illegal activities in the cryptocurrency market. Chun Gan and Ke Tang face various prison terms if convicted. These penalties will be determined by the nature of the crimes they are alleged to have committed.
This case serves as a stark reminder to other crypto exchanges of their obligation to comply with US law. It also underscores the country’s commitment to ensuring the integrity of its financial markets against abuse by unregulated entities.
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