KuCoin has pled guilty to operating an unlicensed money transmitting business, agreeing to pay a fine exceeding $297 million, as confirmed by the U.S. Attorney’s Office for the Southern District of New York.

“KuCoin avoided implementing required anti-money laundering policies designed to identify criminal actors and prevent illicit transactions,” U.S. Attorney Danielle R. Sassoon stated.

Additionally, KuCoin facilitated vast amounts of suspicious transactions, transmitting potentially criminal proceeds stemming from darknet markets and various other fraud schemes.

Under the terms of the plea deal, KuCoin will cease operations in the U.S. for a minimum of two years, and its founders, Chun “Michael” Gan and Ke “Eric” Tang, will step down from their roles.

The exchange has approximately 1.5 million users registered in the U.S., generating at least $184.5 million in fees from them. Notably, KuCoin’s staff had publicized that the exchange lacked a know-your-customer (KYC) program until August 2023, although the program wasn’t fully enacted for existing customers.

Gan and Tang will forfeit around $2.7 million in funds derived from KuCoin’s U.S. operations.

Gan remarked in a press release, asserting that he was resigning to help ensure the company’s ongoing success and emphasized his intention to adhere to U.S. and international laws.

According to CoinGecko data, KuCoin’s exchange token, KCS, witnessed a 10% increase on the day.