KuCoin Faces Legal Storm: Alleged Breach of Anti-Money Laundering Rules Sparks Regulatory Crackdown

Following a crackdown by US prosecutors, KuCoin, one of the world's major cryptocurrency exchanges, along with two of its founders, faced charges for allegedly violating American anti-money laundering regulations. Prosecutors accused KuCoin of deliberately neglecting to implement adequate measures to prevent its platform from being exploited for illicit activities, including terrorist financing, since its establishment in September 2017. The exchange purportedly failed to establish proper customer identity verification protocols and neglected to report suspicious transactions, according to the US Attorney's Office for the Southern District of New York. The exchange allegedly received over $5 billion and sent out more than $4 billion in suspicious and criminal funds. The Commodity Futures Trading Commission also initiated legal action against KuCoin on the same day. In response to the allegations, KuCoin asserted that it operates securely and that user assets are safe, pledging to investigate the matter through legal channels while affirming its commitment to compliance with global regulations.