Cryptocurrency exchange KuCoin and its two founders were charged Tuesday by the United States Department of Justice with conspiring to violate the Bank Secrecy Act and failing to maintain an anti-money laundering program. As a result, it is said that illegal money laundering and terrorist activities have been allowed to enter the arena.
“As alleged, by failing to implement basic anti-money laundering policies, the defendants allowed KuCoin to operate under the shadow of financial markets and serve as a haven for illegal money laundering, with KuCoin receiving more than $5 billion and sending more than $4 billion,” US Attorney Damian Williams said in a statement. There are suspicious and criminal funds.
CuCoin founders Chun Gan and Ke Tang, Chinese nationals, were indicted along with Flashdot Ltd., Pecan Global Ltd. and Phoenixfine Private Limited.
“Today, we uncovered a major global cryptocurrency exchange that our investigation found to be true: an alleged multi-billion dollar criminal conspiracy,” said HSI Acting Special Agent in Chief Darren McCormack.
This story is breaking and will be updated with more details.
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