On February 24, 2025, OKX announced that it had settled charges with the U.S. Department of Justice (DOJ) after failing to obtain a required license to operate as a money transmitter. The settlement comes with a hefty penalty of over $500 million. An affiliate of OKX, Aux Cayes FinTech Co. Ltd., is responsible for the settlement as outlined in a press release.
Key Highlights:
- OKX facilitated more than $5 billion in suspicious transactions according to the DOJ.
- OKcoin, the American version of OKX, received a subpoena from the Commodity Futures Trading Commission (CFTC) on the same day last year.
- An internal document indicated the company’s need for whistleblowing mechanisms to address potential compliance issues.
OKX admitted to not receiving a money transmitter license but did not clarify the originating state for this license. A DOJ statement indicated that “OKX sought out customers in the United States, including in the Southern District of New York.”
Furthermore, unnamed sources have suggested that this settlement resolves various allegations of non-compliance and fraudulent activities that occurred over the years.
The CFTC’s investigation also covered matters related to a recent flash crash of OKX’s native token, OKB, in January 2024. The exchange assured users they would be compensated for losses caused by this incident.
An internal communication to staff emphasized the establishment of an ethics and compliance helpline to facilitate confidential reporting of any ethical concerns.
OKX representatives have not immediately responded to recent inquiries, neither did a CFTC spokesperson.
UPDATE (Feb. 24, 2025, 21:35 UTC): Additional information added.
