KuCoin: Outflow Exceeding $1 Billion

KuCoin witnesses an outflow of funds exceeding $1 billion following allegations from the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).

KuCoin and its founders have been accused of operating an unregistered money-transmitting business and violating the Bank Secrecy Act. After the announcement of these charges, the platform experienced a net outflow of approximately $1.195 billion.

The U.S. Commodity Futures Trading Commission (CFTC) has also initiated civil enforcement proceedings against KuCoin for violating the Commodity Exchange Act and regulations.

U.S. Department of Justice officials have formally accused the cryptocurrency exchange KuCoin and its two founders, Chun Gan and Ke Tang, of several legal violations. The charges, announced on March 26, suggest that the duo operated an unregistered money-transmitting business and violated the Bank Secrecy Act (BSA). The Department alleges that the founders deliberately neglected to implement an Anti-Money Laundering (AML) program, which purportedly allowed the platform to engage in money laundering and terrorist financing activities.

U.S. Attorney Damian Williams criticized KuCoin and its founders, who "deliberately sought to conceal" the participation of U.S. users on their platform. Williams noted that this allowed KuCoin to become a leading cryptocurrency exchange globally, boasting billions of dollars in daily transactions and annual trading volumes reaching trillions of dollars.

*not financial advice