Cryptocurrency exchange OKX’s Aux Cayes FinTech Co. Ltd affiliate has admitted to processing over $1 trillion in transactions for US customers without a license. It will pay more than $504 million in penalties.
On Monday, the exchange pleaded guilty in Manhattan federal court to a felony charge of operating an unlicensed money-transmitting business. OKX, which supports spot trading for over 300 cryptocurrencies, including Bitcoin and Ethereum, acknowledged its violations.
U.S. District Judge Katherine Polk Failla imposed the penalties, including fines and forfeitures, as part of an agreement between the exchange and federal prosecutors.
OKX said in a Feb. 24 statement that the firm acknowledged that certain US customers had previously traded on the company’s global platform due to legacy compliance gaps. According to the exchange, the number of US clients involved amounted to a small percentage of the crypto exchange’s total customer base, and none of these customers remain on its platform.
The Seychelles-based crypto exchange emphasized that no customer harm was alleged, and no charges were filed against any OKX employee.
However, Acting U.S. Attorney Matthew Podolsky criticized the OKX affiliate for “knowingly” violating Anti-Money Laundering laws, alleging it facilitated over $5 billion in suspicious transactions and criminal proceeds.
”Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of US markets but violate the law by allowing criminal activity to continue.”
FBI Assistant Director in Charge James E. Dennehy noted that the OKX affiliate advised individuals to provide false information to circumvent requisite procedures.
”Blatant disregard for the rule of law will not be tolerated,” Dennehy added.
The DOJ stated that the violations took place between 2018 and early 2024, despite OKX having an official policy since 2017 prohibiting U.S. users from trading on its platform.
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