KuCoin’s parent will pay $500,000 to settle CFTC charges following a separate $300 million penalty in a DOJ case over similar conduct.
The parent company of KuCoin will pay a $500,000 civil penalty to settle a case by the US Commodity Futures Trading Commission alleging it operated an unregistered offshore commodities exchange.
In an announcement on Monday, the CFTC said that the US District Court for the Southern District of New York had entered a consent order against KuCoin’s parent company, Peken Global Limited, which will see all of the CFTC’s claims resolved.
Peken Global Limited agreed to the settlement without admitting or denying the CFTC’s claims. It also avoided having to disgorge profits gained during the period it was charged over — from July 2019 to around June 2023 — as the CFTC cited the company’s willing cooperation with the investigation.
The commodities regulator said that the $500,000 penalty imposed by the court factors in that KuCoin had already pleaded guilty and agreed to pay a $300 million fine in January 2025, as part of a parallel Department of Justice (DOJ) case charging the firm for operating an unlicensed money transmitter business.
Source: CFTCKuCoin restricted from offering access to Americans
In March 2024, the CFTC released a statement on its lawsuit against KuCoin outlining that the agency was seeking strong punishments, such as permanent trading bans against Peken Global Limited, as well as Mek Global Limited, PhoenixFin PTE Ltd. and Flashdot Limited — the three other companies involved in the operation of KuCoin.
The CFTC alleged that KuCoin operated “sham” know-your-customer procedures and did not take enough action to prevent US customers from using the platform, while also charging it with failing to register as a futures commission merchant or foreign board of trade.
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Under the latest agreement, Peken Global is prohibited from allowing US residents to trade on KuCoin unless it registers with the CFTC as a foreign board of trade.
Cointelegraph reached out to KuCoin for comment.
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