the United States has charged global cryptocurrency exchange KuCoin and its founders, Chun Gan (also known as “Michael”) and Ke Tang (also known as “Eric”), with orchestrating a multibillion-dollar criminal conspiracy. This indictment, unveiled by U.S. Attorney Damian Williams and Homeland Security Investigations’ Darren McCormack, accuses the parties of operating without a license and flouting anti-money laundering laws to cement KuCoin’s status as one of the leading cryptocurrency exchanges worldwide.

According to official statements, KuCoin, along with its founders, failed to establish a robust anti-money laundering program, neglected to verify customer identities, and did not file any reports on suspicious activities. This lapse in protocol has allegedly positioned KuCoin as a conduit for illicit financial flows, including money from darknet markets and various fraud schemes, tallying over $9 billion in suspicious transactions.

The indictment details how KuCoin exploited its significant U.S. customer base, despite efforts to conceal this fact, to scale into a global trading powerhouse. “KuCoin allegedly took advantage of the United States’ unique financial opportunities without adhering to its legal obligations,” stated Williams. This disregard for U.S. laws aimed at combating financial crimes and corruption underpins the charges leveled against the exchange and its executives, who currently remain at large.

Founded in September 2017, KuCoin quickly ascended the ranks to become a top cryptocurrency exchange, boasting over 30 million users and managing billions in daily trading volume. Despite its success, the indictment alleges KuCoin and its founders consciously evaded U.S. regulations requiring registration with financial oversight bodies like the Financial Crimes Enforcement Network (FinCEN) and the Commodity and Futures Trading Commission (CFTC).

The charges against KuCoin and its founders are significant, marking a decisive step by U.S. authorities to clamp down on illicit activities within the cryptocurrency market. Each faces substantial prison sentences if convicted, reflecting the serious nature of their alleged offenses. This case serves as a stark reminder to other exchanges and financial institutions of the imperative to comply with U.S. laws, emphasizing the country’s commitment to ensuring the integrity of its financial markets against abuse by unregulated entities.