Cryptocurrency exchange KuCoin has pleaded guilty to operating an unlicensed money transmitting business, as reported by Bloomberg. 

KuCoin Agrees To Hefty Fines 

The plea was made before US District Judge Andrew Carter in Manhattan, who imposed a considerable penalty on KuCoin. The corporate agreed to pay nearly $300 million in fines and forfeitures, which incorporates a wonderful of roughly $113 million and forfeitures totaling $184.5 million. 

Bloomberg reports that this resolution addresses a criminal case that follows a series of civil claims that the exchange settled in Latest York greater than a 12 months ago.

In 2023, the exchange faced significant scrutiny from regulators, resulting in a settlement that required it to dam Latest York users from its platform. 

As a part of that agreement, KuCoin also paid $22 million to settle a lawsuit initiated by the state, which accused the platform of failing to register before allowing investors to trade cryptocurrencies.

Founders Seek Relief Through Deferred Prosecution Deals

Adding to the complexity of this case, two of KuCoin’s co-founders have signed deferred prosecution agreements with the US Department of Justice (DOJ). 

These agreements typically allow individuals to avoid prosecution by complying with certain conditions set forth by the federal government, indicating a possible pathway for the founders to mitigate legal repercussions.

This recent event highlights the growing regulatory scrutiny confronting cryptocurrency exchanges in the USA. Nevertheless, with President Donald Trump’s second term, these developments are anticipated to diminish markedly.

The present forty seventh President of the USA has committed to a more transparent and pro-crypto regulatory environment, desiring to create a strategic digital asset reserve.

On the time of writing, the exchange’s native token KCS has dropped 4% to its current trading price of $12.80. 

Featured image from DALL-E, chart from TradingView.com