Michaela
Aux Cayes FinTech Co. Ltd, the operator behind global crypto exchange OKX, has admitted to running an unlicensed money transfer service in violation of U.S. anti-money laundering laws. It reportedly agreed to pay over $500 million in fines.
Following a probe by the U.S. Department of Justice, the operator resolved the charges by paying $84 million in fines and forfeiting $421 million in fees primarily earned from institutional clients.
In a company blog post, OKX explained that legacy compliance gaps had allowed some U.S. customers to trade on its global platform. However, these users made up only a tiny fraction of its total customer base and are no longer active.
The post further stated that no customer harm was alleged, no employees were charged, and the settlement did not require a government-appointed monitor.
In an X post announcing the update, the crypto exchange confirmed its full cooperation with the DOJ. “Today our compliance controls are among the leading in the industry. This matter is now behind us,” the exchange wrote.
“We have resolved the investigation and we will continue to build on our onshore expansion,” it added.
Despite OKX’s assertion that the issue is resolved, Matthew Podolsky, Acting U.S. Attorney for the Southern District of New York, condemned the exchange in a press release for “knowingly” violating anti-money laundering laws and neglecting essential safeguards to prevent financial system abuse.
“Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue,” Podolsky stated.
FBI Assistant Director in Charge James E. Dennehy also echoed these criticisms, alleging that the exchange encouraged individuals to submit misleading information to bypass required protocols.
“In their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform,” Dennehy stated.
According to the DOJ, the violations spanned from roughly 2018 to early 2024, and OKX has maintained a policy barring U.S. persons from transacting on its crypto exchange since 2017.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
