Cryptocurrency trade KuCoin claims that its customers’ assets are protected amid a series of criminal and civil allegations filed by United States Southern District of New York (SDNY) prosecutors and the Commodity Futures Buying and selling Fee (CFTC) on March 26.
“KuCoin is working effectively, and the assets of our customers are completely protected,” the trade wrote. “We are conscious of the associated stories and are at present investigating the small print by means of our legal professionals. KuCoin respect the legal guidelines and rules of varied international locations and strictly adheres to compliance requirements.” Simply hours later, the trade posted one other tweet, showing unfazed by March 26’s novel allegations:
“You imply KuCoin? That’s the place I discovered my 100x CryptoGems.”
On the identical time, KuCoin’s native token, KuCoin Token (KCS), has misplaced 12% of its worth over the previous 24 hours and is at present buying and selling at $12.64 on the time of publication. Earlier within the day, the U.S. SDNY introduced legal fees in opposition to KuCoin co-founders Chun Gan and Ke Tang, each Chinese language nationals. The 2 are accused of conspiring to function an unlicensed money-transmitting enterprise and “conspiring to violate the Financial institution Secrecy Act by willfully failing to take care of an enough anti-money laundering (‘AML’) program.”
As told by prosecutors, regardless of having substantial operations within the U.S., KuCoin didn’t register with the CFTC or the Monetary Crimes Enforcement Community as a correct cash transmitter. As well as, regardless of its alleged facade of compliance with U.S. rules, the trade onboarded U.S. customers with out prior licensing, and so they accounted for greater than 18% of the trade’s user base in 2018.
“Since its founding in 2017, KuCoin has acquired over $5 billion, and despatched over $4 billion, of suspicious and legal proceeds,” prosecutors wrote. “In different phrases, KuCoin’s no-KYC coverage was integral to its progress and success.”
In keeping with the parallel CFTC complaint, KuCoin “supplied and executed commodity derivatives and leveraged, margined, or financed commodity transactions to and for folks within the U.S. from roughly July 2019 to roughly June 2023, and did not implement required know-your-customer (KYC) compliance procedures.” The CFTC alleged that KuCoin imposed no IP verification procedures to dam U.S. customers’ entry throughout this time.
Each legal and civil proceedings are ongoing, and its co-founders, Chun Gan and Ke Tang, stay at giant. Regardless of the complaints, neither prosecutors nor regulators alleged KuCoin mismanaged customers’ assets.
Associated: KuCoin responds to claims of user funds being locked
Cointelegraph by Zhiyuan Solar KuCoin says user assets are unaffected by US SDNY indictment cointelegraph.com 2024-03-26 17:39:55
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