Security News > 2024 > March > KuCoin charged with AML violations that let cybercriminals launder billions
The U.S. Department of Justice has charged global cryptocurrency exchange KuCoin and two of its founders for failing to adhere to anti-money laundering requirements, allowing threat actors to use the platform to launder money.
Founded in 2017 by Chinese citizens Chun Gan and Ke Tang, KuCoin is one of the largest cryptocurrency exchange platforms to buy, sell, trade, and store a variety of digital currencies.
In an indictment unsealed yesterday, the Department of Justice claims that KuCoin knowingly allowed U.S.-based users to trade on its platform while fulfilling none of its AML obligations, as defined by U.S. laws and regulations.
Not only did KuCoin not comply with the rules, but the DOJ says the platform attempted to conceal they had U.S. customers to appear exempt from U.S. AML and KYC requirements.
"As a result of KuCoin's willful failures to maintain the required AML and KYC programs, KuCoin has been used as a vehicle to launder large sums of criminal proceeds, including proceeds from darknet markets and malware, ransomware, and fraud schemes," reads the Department of Justice announcement.
"Since its founding in 2017, KuCoin has received over $5 billion, and sent over $4 billion, of suspicious and criminal proceeds."