In a development that caught the attention of investors and cryptocurrency market enthusiasts around the world, KuCoin, one of the largest cryptocurrency platforms, along with two of its founders, find themselves in the eye of the storm.

On Tuesday, the United States Department of Justice laid heavy charges against the company and its founders for allegedly conspiring to violate the Bank Secrecy Act by neglecting to implement an adequate anti-money laundering program. This action would have facilitated money laundering operations and terrorist activities through its platform.

Damian Williams, a US Attorney, highlighted the seriousness of the situation, stating: “As alleged, by failing to implement even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadows of the financial markets and be used as a haven for illicit money laundering, with KuCoin receiving over $5 billion and sending over $4 billion in suspicious and criminal funds.”

KuCoin founders Chun Gan and Ke Tang, Chinese nationals, are currently on the run. They were charged along with several entities linked to the company, including Flashdot Limited, Peken Global Limited and Phoenixfin Private Limited. The indictment also revealed that KuCoin operated an unlicensed money transmission business, actively seeking customers in the US for its spot and futures operations, without properly registering as required by US regulatory agencies.

“Exposing an alleged multi-billion-dollar criminal conspiracy,” as put by HSI Special Agent in Charge Darren McCormack, the indictment highlights the allegation that KuCoin did not implement an effective know your customer (KYC) program by July 2023, and that only for new customers, leaving a gap for old customers.

The repercussion of these accusations soon affected the market, with the value of KuCoin (KCS) shares experiencing a drastic drop. Within hours of the announcement, KCS saw its value drop more than 12% to $12.65, marking the most challenging day for the coin since December 2023. This event calls into question the coin’s resilience on the exponential moving average of the last 55 days, a key indicator for investors.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.


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