Aux Cayes FinTech Co. Ltd, the operator of cryptocurrency exchange OKX, has acknowledged running an unlicensed money-transmitting business, breaching U.S. Anti-Money Laundering laws.
As a part of a settlement with the U.S. Department of Justice, the company will pay over $500 million in penalties and forfeited earnings.
The Seychelles-based firm agreed to pay an $84 million penalty and surrender $421 million in revenue as part of a settlement following a federal investigation. The DOJ accused the company of facilitating over $5 billion in suspicious transactions and criminal proceeds.
The DOJ investigation found that OKX had a policy since 2017 banning U.S. customers from using its platform. However, compliance failures allowed some American clients to trade from 2018 to early 2024, leading to charges against Aux Cayes FinTech. OKX acknowledged past regulatory issues but stated that the affected U.S. customers represented a small part of its user base and are no longer active. The exchange clarified that there were no allegations of customer harm or charges against individual employees.
Federal authorities condemned the company for violating AML regulations and facilitating illicit financial activities. Acting U.S. Attorney Matthew Podolsky criticized the firm for “knowingly” circumventing these regulations. At the same time, FBI Assistant Director James E. Dennehy accused an OKX affiliate of advising individuals on how to provide false information to evade regulatory checks, labelling the violations as a blatant disregard for the law.
Following the settlement, OKX announced plans to enhance its compliance program, including hiring an independent consultant to address regulatory concerns. CEO Star Xu reiterated the company’s commitment to regulatory adherence:
“Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies. I am proud of our company.”
Meanwhile, OKX recently received one of the first MiCA (Markets in Crypto-Assets) licenses, allowing it to extend its services to 28 European Economic Area (EEA) countries.
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