KuCoin Faces Charges For AML Violations In The US

KuCoin, a prominent player in the cryptocurrency exchange arena, has found itself embroiled in legal proceedings with US prosecutors over alleged violations of anti-money laundering (AML) regulations.

The exchange, known for its substantial daily trading volume exceeding $2 billion, has been accused of failing to comply with American AML rules, as revealed by federal prosecutors in Manhattan.

According to prosecutors, KuCoin and its founders have been charged with willfully neglecting to establish and uphold a robust program aimed at preventing illicit activities on the platform since its inception in September 2017.

Specifically, the exchange purportedly lacked adequate measures to prevent the misuse of its platform for illicit purposes, including the financing of terrorism. Furthermore, KuCoin allegedly neglected to implement sufficient identity verification procedures for its clients and failed to report suspicious transactions.

US Attorney Damian Williams emphasized the severity of the allegations, asserting that KuCoin had processed over $5 billion in suspicious and criminal funds, underscoring the magnitude of the purported violations.

KuCoin Responds, Reassuring Users Of Safety

In response to the accusations, KuCoin issued a statement reassuring users of the exchange’s operational integrity and the safety of their assets. The exchange acknowledged the ongoing investigations and indicated that it is actively working with legal counsel to address the matter comprehensively. 

However, the announcement of the charges has had a tangible impact on KuCoin’s native token, $KCS, which experienced a sharp decline of 14% following the news.

As the legal proceedings unfold, the cryptocurrency community awaits further developments regarding KuCoin’s compliance efforts and the potential ramifications of the charges on the exchange’s operations and reputation.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: releon003/123RF // Image Effects by Colorcinch

Via: https://themerkle.com

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