Aux Cayes FinTech Co. Ltd, the operator behind the cryptocurrency exchange OKX, has pleaded guilty to operating an unlicensed money-transmitting business in violation of U.S. Anti-Money Laundering (AML) laws, agreeing to pay over $500 million in fines and forfeitures.
Following an investigation by the U.S. Department of Justice (DOJ), Aux Cayes will pay $84 million in penalties and forfeit approximately $421 million in fees primarily collected from institutional clients.
In a statement issued on February 24, OKX acknowledged that “legacy compliance gaps” had allowed certain U.S. customers to access its global platform.
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OKX Says U.S. Clients Were Minimal, None Remain on Platform
The exchange emphasized that these clients represented a small portion of its user base and confirmed that no U.S. customers currently remain on the platform. OKX also clarified that no customers were harmed and no employees faced charges.
However, Acting U.S. Attorney Matthew Podolsky criticized the company, accusing it of knowingly violating AML laws and enabling over $5 billion in suspicious and criminal transactions.
“Today’s guilty plea and penalties underscore that financial institutions accessing U.S. markets must not facilitate criminal activity,” Podolsky said.
Further highlighting compliance failures, FBI Assistant Director James E. Dennehy noted that OKX’s affiliate even advised individuals on how to falsify information to bypass regulatory procedures. “Blatant disregard for the rule of law will not be tolerated,” Dennehy added.
The DOJ said the violations occurred between 2018 and early 2024, despite OKX implementing an official policy in 2017 to block U.S. residents from using its platform.
In response to the settlement, OKX pledged to enhance its compliance framework. CEO Star Xu announced plans to hire a compliance consultant to address deficiencies and improve regulatory standards.
“Our vision is to make OKX the gold standard of global compliance across markets,” Xu stated in a February 24 post on X (formerly Twitter).
We cooperated with the US Dept of Justice in their thorough investigation of our business. We had a small percentage of customers who were able to use our international services due to historical compliance gaps. Today our compliance controls are among the leading in the… pic.twitter.com/sg1b2GC4wE
— OKX (@okx) February 24, 2025
The settlement marks one of the largest regulatory penalties imposed on a crypto exchange, reflecting increased scrutiny of digital asset platforms operating in the U.S. financial system.
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KuCoin Pleads Guilty To Unlicensed Operations
Last month, KuCoin also pleaded guilty to operating an unlicensed money-transmitting business in the United States.
As part of a settlement with US authorities, KuCoin agreed to pay nearly $300 million and will exit the US market for the next two years. The exchange’s founders, Michael Gan and Eric Tang, have also been forced to resign as part of the deal.
The settlement, announced by the Department of Justice (DOJ) on Jan. 27, requires KuCoin to forfeit $184.5 million and pay an additional $112.9 million fine.
KuCoin founders Gan and Tang will forfeit $2.7 million and have agreed to step away from all management and operational roles within KuCoin. The company, officially known as PEKEN Global Limited, entered its guilty plea in a Manhattan federal court.
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Key Takeaways
- OKX’s operator, Aux Cayes FinTech, pleaded guilty to operating an unlicensed money-transmitting business and will pay over $500 million in fines and forfeitures.
- The violations occurred between 2018 and early 2024.
- U.S. authorities accused the company of facilitating over $5 billion in suspicious transactions.
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