OKX Exchange Pleads Guilty to U.S. Charges, Agrees to $504 Million Penalty
OKX Exchange has admitted to violating U.S. anti-money laundering laws and will pay $504 million in penalties after pleading guilty to operating an unlicensed money-transmitting business. The settlement follows an extensive investigation by the U.S. Department of Justice (DOJ).
| Key Takeaways: – OKX exchange admitted to violating U.S. anti-money laundering laws and agreed to pay $504 million in penalties for. – The exchange allowed U.S. users to trade despite restrictions, failed to enforce compliance measures, and advised clients on bypassing controls. |
Aux Cayes FinTech, the entity behind OKX, acknowledged that it allowed U.S. customers to use its platform despite policies suggesting otherwise.
According to prosecutors, between 2017 and 2024, OKX exchange facilitated more than $5 billion in trades for American users, failing to enforce proper compliance measures. The company also reportedly advised customers on how to bypass existing controls, such as using virtual private networks (VPNs) and providing false information.
As part of the settlement, OKX will forfeit $421 million in revenue from institutional clients and pay an additional $84 million in penalties. The DOJ emphasized that the exchange knowingly disregarded financial regulations.
Acting U.S. Attorney Matthew Podolsky stated that OKX actively sought U.S. customers despite restrictions, enabling over $1 trillion in transactions without registering as a money services business or enforcing know-your-customer (KYC) procedures.
Internal records cited in the plea agreement revealed that OKX exchange was aware of its U.S. clientele and even sought to attract major institutional investors. One such client reportedly conducted approximately $1.2 trillion in transactions from 2019 to 2023.
Binance, the world’s largest exchange, recently paid $4.3 billion in fines for similar violations, leading to the resignation and imprisonment of its founder, Changpeng “CZ” Zhao. OKX, the fourth-largest crypto exchange by trading volume, now faces heightened scrutiny from US regulators.
Meanwhile, the Securities and Exchange Commission (SEC) has softened its stance on crypto enforcement. Coinbase announced that the SEC has agreed to drop its lawsuit against the company for allegedly operating an illegal exchange. Similarly, Robinhood Crypto and NFT marketplace OpenSea reported that the SEC closed investigations into their crypto-related operations.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
