OKX, a leading cryptocurrency exchange, is focused on becoming a leader in regulatory compliance following a $500 million settlement with US authorities. The CEO of OKX, Star Xu, acknowledged past compliance lapses but emphasized that US customers only made up a small fraction of their user base. Xu expressed the company’s commitment to improving regulatory practices and working with authorities worldwide to establish OKX as a benchmark for compliance.
In terms of the settlement, OKX’s operator, Aux Cayes Fintech Co. Ltd, pleaded guilty to operating an unregistered money-transmitting business in the US. The settlement includes over $504 million in financial penalties, including an $84 million fine and the forfeiture of $420 million generated from US-based clients. The US Department of Justice (DOJ) revealed that OKX violated anti-money laundering laws by failing to implement safeguards, resulting in over $5 billion in suspicious transactions. Additionally, OKX allowed US clients to access its platform despite policies against such activities and did not register with FinCEN.
The authorities also accused OKX of enabling users to bypass know-your-customer (KYC) protocols and advised some US users to provide false information, leading to undetected illicit transactions. FBI Assistant Director James Dennehy stated that OKX flagrantly violated US law and actively sought customers in the United States, even advising individuals to provide false information.
Despite these compliance failures, OKX emphasized that US customers accounted for a small portion of their global user base and confirmed that no harm to customers or charges against employees were made. The exchange expressed its respect for regulations in every market and stated that this settlement will support its journey towards becoming a model for global compliance. OKX highlighted that its compliance controls are now among the leading in the industry and considers this matter to be behind them.
In related news, Coinbase, OpenSea, and Robinhood recently escaped further investigation, fines, or enforcement action by the SEC. OKX’s commitment to regulatory compliance aligns with the increasing focus on compliance within the cryptocurrency industry.
[Note: The part in the original article that asks the audience to sign in for a newsletter has been removed.]
