KuCoin and Founders Charged with AML Violations by Justice Department

The United States Justice Department has filed charges against the popular cryptocurrency exchange KuCoin and two of its founders for operating an unlicensed money transmitting business and violating the Bank Secrecy Act (BSA). According to the U.S. Department of Justice, the founders Chun Gan and Ke Tang knowingly neglected to establish an Anti-Money Laundering program at KuCoin, which allowed the platform to be exploited for money laundering and terrorist financing activities. The exchange itself has been accused of running an unlicensed money transmitting business and breaching the BSA. U.S. Attorney Damian Williams asserted that KuCoin intentionally concealed the fact that a significant number of U.S. users were trading on its platform. He emphasized that the exchange took advantage of its sizable U.S. customer base to become a major player in the global cryptocurrency derivatives and spot exchanges, facilitating billions of dollars in daily trades and trillions of dollars in annual trade volume. Williams condemned the defendants for their failure to implement even basic anti-money laundering policies, which enabled KuCoin to operate discreetly in the financial markets and serve as a hub for illicit money laundering activities.

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