Crypto exchange OKX has hired former New York Governor Andrew Cuomo as a legal advisor during its $505 million federal settlement with U.S. authorities, according to a Bloomberg report published on April 2.

Cuomo, a licensed attorney in New York, began advising OKX after resigning from the governorship in August 2021. He worked closely with the company’s executives, supporting them on how to navigate the federal investigation that led to OKX pleading guilty to operating an unlicensed money-transmitting business against U.S. anti-money laundering laws.

OKX Agrees to $505 Million Settlement Over Unlicensed Operations

On February 24, the Seychelles-based exchange consented to pay $84 million in civil penalties and forfeit $421 million in fees primarily accrued from institutional clients.

The U.S. Department of Justice stated that these violations occurred between 2018 and 2024, notwithstanding the platform’s official policy since 2017 prohibiting U.S. users from transacting on its exchange.

Cuomo’s spokesperson, Rich Azzopardi, confirmed that Cuomo has been providing legal services to various corporations and individuals since leaving office, but stressed that he has not represented any clients before New York state or city agencies.

Azzopardi also mentioned that Cuomo frequently endorses former colleagues for corporate positions. While OKX refused to comment on its relationship with Cuomo, Bloomberg noted that the former governor had also impacted leadership decisions at the firm. Notably, Cuomo recommended Linda Lacewell, a longtime associate and former U.S. Attorney, for the position of chief legal officer at OKX.

In light of the settlement, OKX is committed to enhancing its compliance framework and is set to hire a compliance consultant to help resolve regulatory issues identified in the investigation.

Our vision is to make OKX the gold standard of global compliance across various markets and their respective regulatory bodies. — Star Xu, CEO of OKX, in a post on X dated February 24.

OKX Suspends DeFi Services Amid Scrutiny

Last month, OKX temporarily suspended its decentralized finance (DeFi) services, citing increased media scrutiny and alleged coordinated attacks involving the North Korean Lazarus Group. The company has acknowledged the necessity to address regulatory feedback raised by the investigation, especially as EU regulators conduct an inquiry into the platform over allegations of laundering $100 million from the February 2025 Bybit hack.

Key Takeaways

• OKX crypto exchange enlisted former Governor Andrew Cuomo during its $505 million U.S. settlement.
• Cuomo influenced key decisions, including the selection of OKX’s new chief legal officer.
• OKX is increasing compliance efforts in response to rising regulatory scrutiny in the U.S. and EU.