KuCoin and its founders have been charged with major violations in the US, putting a dent in its image after Damian Williams put forward the details of the charges. The US Attorney in the Southern District of New York said that KuCoin and Chun Gan & Ke Tang were operating without following the basic protocols of AML, that is, anti-money laundering. It is estimated that approximately $5 billion worth of funds were moved on the platform, comprising suspicious and criminal funds.
Williams detailed that KuCoin, plus the founders, deliberately sought to hide the facts about the number of users who were trading on the platform. Therefore, they cannot assist authorities in identifying and driving out schemes for crime and corrupt financing. Simply put, KuCoin and its founders should have chosen to share the number of users on the platform and help authorities identify criminal activities. However, they chose to conceal those pieces of information.
KuCoin was previously under scrutiny when authorities found that it operated without the basics of KYC on the platform. Only in July 2023 did the platform finally implement the KYC aspect and integrate it into its registration process.
Allegations are indeed serious, for they highlight the apparent oversight in the operations of KuCoin – facilitating the movement of illicit funds.
Advertisement
KuCoin has a vast customer base in the US. It should have been only evident that the platform abided by crucial policies. They now face the accusations of skirting crucial laws and hampering the market. KuCoin has assured its customers that there are no hindrances in its operations, and the platform is working as usual, with their funds being secured as they were. KuCoin has further expressed respect for following the laws and regulations of the countries where it operates.
Members have responded with mixed emotions. Some have said they are going ahead and buying the manipulated dip. Others have wished for things to get clear as early as possible. Some of them have also highlighted withdrawal issues on the platform.
Founded in 2017, KuCoin houses over 600 cryptocurrencies and more than a thousand trading pairs. Its operations are supported in countries like the US, the UK, and Russia, to mention a few. It comes with a seamless registration process, details about which can be found in our KuCoin Exchange review. It further sheds light on the platform’s offering of a Demo Trading account.
KuCoin is currently facing serious allegations from the Southern District of New York. These pertain to the Bank Secrecy Act and Money Laundering. If found guilty, KuCoin will have difficulty navigating back into the market. Priority will have to be placed on keeping customers’ funds safe.
Advertisement
In the detailed statement, Damian Williams also mentioned Chun Gan and Ke Tang for avoiding following AML protocols.
