DOJ accuses crypto exchange KuCoin of skirting anti-money laundering laws

KuCoin settled with the New York AG’s office in December of last year

article-image

Sergei Elagin/Shutterstock modified by Blockworks

share

The US government has accused crypto exchange KuCoin and two founders of violating anti-money laundering laws.  

KuCoin founders Chun Gan and Ke Tang were each charged with one count of conspiracy to violate the US Bank Secrecy Act and one count of conspiracy to operate an unlicensed money transmitting business. 

Neither have been arrested, according to the US Department of Justice.

“As today’s indictment alleges, KuCoin and its founders deliberately sought to conceal the fact that substantial numbers of US users were trading on KuCoin’s platform,” US Attorney Damian Williams said in a statement.

Read more: Former government officials say DAAMLA could harm US crypto industry

By skirting AML policies, the DOJ alleged, KuCoin was able to transmit more than $4 billion of “suspicious and criminal funds” and received $5 billion from operating “in the shadows of the financial markets.”

The DOJ said that KuCoin, Gan and Tang “affirmatively attempted to conceal the existence of KuCoin’s US customers in order to make it appear as if KuCoin was exempt from US AML and KYC [know-your-customer] requirements.”

US customers were allegedly “actively prevented” from identifying themselves when they opened accounts.

“Indeed, until at least July 2023, KuCoin did not require customers to provide any identifying information. It was only in July 2023, after KuCoin was notified of a federal criminal investigation into its activities, that KuCoin belatedly adopted a KYC program for new customers,” the DOJ said.

Last December, KuCoin settled with the New York Attorney General for $22 million and announced that it would stop operating in New York after it was accused of not properly registering with the state. $16.7 million of the payment went to refunds for New York customers. 

The Tuesday action against KuCoin marks the first time that the DOJ has targeted a crypto exchange since it announced a multi-billion dollar settlement with Binance late last year.

As part of its settlement, former CEO Changpeng Zhao stepped down and is set to be sentenced next month. Binance was also accused of AML violations.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

With much of the bitcoin mining supply chain based in Asia, US-based operations now face higher equipment prices

article-image

Anticipating an economic downturn, venture firms may be less likely to invest

article-image

Trump’s tariffs may have potentially significant impacts on GDP, household spending and food prices — if they hold

article-image

The Binance-affiliated stablecoin lost about $200M of market capitalization

article-image

How the Bitcoin conversation has evolved since the price was less than $1

article-image

The platform also rolled out 13 tokenized funds for institutions on the Connect platform