{"id":163697,"date":"2024-03-26T16:30:19","date_gmt":"2024-03-26T16:30:19","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=163697"},"modified":"2024-03-26T16:32:48","modified_gmt":"2024-03-26T16:32:48","slug":"kucoin-faces-u-s-doj-charges","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/kucoin-faces-u-s-doj-charges\/","title":{"rendered":"KuCoin Faces U.S. DOJ Charges in Multi-Billion Dollar Criminal Conspiracy Case"},"content":{"rendered":"<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">TL;DR<\/span><\/span><\/strong><\/p>\n<ul style=\"text-align: justify\">\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">US justice indictment against KuCoin and its founders for violating the Bank Secrecy Act and operating without a license.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin involved in money laundering and terrorist financing, with movements of billions of dollars.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Founders face up to five years in prison; Associated entities could receive sentences of up to ten years.<\/span><\/span><\/li>\n<\/ul>\n<hr \/>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The United States justice system has charged <\/span><span style=\"vertical-align: inherit\">global cryptocurrency <\/span><\/span><a href=\"https:\/\/crypto-economy.com\/list-of-crypto-exchanges-cex-and-dex\/\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">exchange <\/span><\/span><\/a><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and two of its founders, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Chun Gan and Ke Tang,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> for allegedly <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">violating the Bank Secrecy Act <\/span><\/span><\/strong> <strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">and <\/span><\/span><\/strong> <strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">operating an unlicensed money transmission business<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">According to the <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Department of Justice<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> has facilitated money laundering and terrorist financing through its platform, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">receiving more than $5 billion<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> and <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">sending more than $4 billion in suspicious and criminal funds<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> since its founding in <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">2017.<\/span><\/span><\/strong><\/p>\n<p><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The <\/span><\/span><a href=\"https:\/\/www.justice.gov\/usao-sdny\/pr\/prominent-global-cryptocurrency-exchange-kucoin-and-two-its-founders-criminally\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">indictment<\/span><\/span><\/a><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> states that <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the company\u00a0<\/span><\/span><\/strong> <strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">deliberately sought customers in the United States<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, becoming one of the largest <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">cryptocurrency exchanges<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> in the world with more than 30 million users and billions of dollars in <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">daily trading volume<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Despite this, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> allegedly failed to comply with <strong>US anti-<\/strong><\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">money laundering<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> <strong>laws,<\/strong> including implementing an adequate <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">anti-money laundering program and <\/span><\/span><\/strong><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">know-your-customer (KYC)<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> processes<\/span><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">According to the indictment, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the company, Gan and Tang would have deliberately failed to comply with US anti-money laundering obligations,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> failing to implement an adequate KYC program until July 2023 and actively concealing the existence of US clients.<\/span><\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-81144\" src=\"https:\/\/crypto-economy.com\/es\/\/wp-content\/uploads\/sites\/4\/2024\/03\/kuc.jpg\" alt=\"KuCoin Faces US Department of Justice Charges in Criminal Conspiracy Case\" width=\"825\" height=\"300\" \/><\/p>\n<h2><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin&#8217;s no-KYC policy allegedly facilitated laundering of large sums of criminal money<\/span><\/span><\/h2>\n<p style=\"text-align: justify\">As a result of these actions, they were implicated in the receipt of <strong>more than $5 billion<\/strong> and the transfer of <strong>in excess of $4 billion<\/strong> in illicit funds, contributing to the perpetuation of financial crimes.<\/p>\n<p style=\"text-align: justify\"><strong>Gan and Tang<\/strong>, both <strong>Chinese nationals<\/strong>, <strong>face charges<\/strong> that could result in up to <strong>five years in prison each<\/strong>.<\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Additionally, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">entities associated with <\/span><\/span><a href=\"https:\/\/crypto-economy.com\/news\/companies\/\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">KuCoin<\/span><\/span><\/a><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> face charges with possible <\/span><\/span><\/strong> <strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">sentences of up to ten years in prison<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">The investigation was conducted by <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">HSI New York&#8217;s El Dorado Task Force, with assistance from the Commodity Futures Trading Commission,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> which filed a parallel civil action against KuCoin.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Importantly, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the allegations in the indictment are just that<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">accusations, and defendants are presumed innocent until proven guilty at trial.<\/span><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR US justice indictment against KuCoin and its founders for violating the Bank Secrecy Act and operating without a license. KuCoin involved in money laundering and terrorist financing, with movements of billions of dollars. Founders face up to five years in prison; Associated entities could receive sentences of up to ten years. The United States &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"KuCoin Faces U.S. DOJ Charges in Multi-Billion Dollar Criminal Conspiracy Case\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/kucoin-faces-u-s-doj-charges\/#more-163697\" aria-label=\"More on KuCoin Faces U.S. DOJ Charges in Multi-Billion Dollar Criminal Conspiracy Case\">Read more<\/a><\/p>\n","protected":false},"author":33,"featured_media":163698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4620,4743,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/163697"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=163697"}],"version-history":[{"count":6,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/163697\/revisions"}],"predecessor-version":[{"id":163704,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/163697\/revisions\/163704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/163698"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=163697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=163697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=163697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}