OKX, a cryptocurrency exchange platform, recently pleaded guilty to operating as an unlicensed money transmitting business. As part of their settlement, they will pay a hefty $84 million fine and forfeit $421 million in commission fees from U.S. customers.
In an official statement, OKX admitted to having “legacy compliance gaps” that allowed some U.S. customers to trade on their global platform in the past. While these users made up a small portion of their customer base, they are no longer active on the platform. The company clarified that the settlement does not involve any claims of customer harm, criminal charges against employees, or the appointment of a government monitor.
The funds being forfeited primarily come from a few institutional clients. In response to these compliance issues, OKX has hired a compliance consultant to strengthen their regulatory framework and has committed to ongoing efforts in this area.
Acting U.S. Attorney Matthew Podolsky emphasized the severity of the situation, stating, “For more than seven years, OKX knowingly violated anti-money laundering laws and failed to implement policies necessary to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars in questionable transactions and criminal proceeds.”
He added, “Today’s criminal charges and sentences underscore that there will be consequences for financial institutions that exploit U.S. markets but violate the law by allowing criminal activity to continue.”
*Please note that this article is not intended as investment advice.