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The Commodity Futures Trading Commission filed a complaint against the companies that operate the crypto exchange KuCoin.\u00a0<\/p>\n
\u201cThe complaint charges KuCoin illegally dealt in off-exchange commodity futures transactions and leveraged, margined or financed retail commodity transactions; solicited and accepted orders for commodity futures, swaps, and leveraged, margined or financed retail commodity transactions without registering with the CFTC,\u201d the press release said<\/a>.\u00a0\u00a0<\/p>\n In the CFTC\u2019s complaint against the exchange, the regulator says that KuCoin allowed investors to trade commodities<\/a> including bitcoin, ether and litecoin.\u00a0<\/p>\n \u201cThese actions brought KuCoin<\/a> squarely within the CFTC<\/a>\u2019s authority and required that KuCoin register with the CFTC and comply with all applicable regulations,\u201d the suit said.<\/p>\n Read more:<\/strong> DOJ accuses crypto exchange KuCoin of skirting anti-money laundering laws<\/a><\/p>\n The CFTC said it seeks \u201cdisgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the CEA and CFTC regulations, as charged.\u201d<\/p>\n The CFTC\u2019s complaint follows a suit from the Department of Justice. The DOJ<\/a> targeted the exchange and two co-founders, alleging that the defendants violated the Bank Secrecy Act.<\/p>\n The Commission said that from July 2019 to June 2023 the exchange didn\u2019t implement know-your-customer (KYC<\/a>) procedures. However, the KYC procedures offered to US customers were allegedly a \u201csham\u201d and \u201cdid not prevent US customers from trading commodity interests and derivatives on the platform.\u201d<\/p>\n Read more:<\/strong> Ether is the Schr\u00f6dinger\u2019s cat of crypto<\/a><\/p>\n The DOJ alleged that KuCoin failed to require KYC, and then \u2014 in July 2023 \u2014 the platform adopted a KYC program<\/a> after it was made aware of a government investigation.<\/p>\n Because the exchange didn\u2019t enforce anti-money laundering policies, KuCoin transmitted over $4 billion of \u201csuspicious and criminal funds\u201d and received $5 billion from operating \u201cin the shadows of the financial markets.\u201d<\/p>\n The CFTC and the DOJ actions aren\u2019t the first government actions the exchange has faced. In December, KuCoin settled with the New York Attorney General\u2019s office<\/a> for $22 million.\u00a0<\/p>\n Late last year, both the DOJ and CFTC targeted another crypto exchange \u2014 Binance<\/a> \u2014 in a multi-billion dollar settlement<\/a>. Binance was also accused of anti-money laundering violations.<\/p>\n
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