KuCoin, a popular cryptocurrency exchange, has recently faced legal challenges from the United States Southern District of New York (SDNY) prosecutors and the Commodity Futures Trading Commission (CFTC) on March 26.

In response to these allegations, KuCoin reassured its users that the exchange is operating normally and that user assets are secure. The exchange emphasized its commitment to complying with laws and regulations in various countries.

Despite these assurances, KuCoin Token (KCS), the exchange’s native token, experienced a 13% decline in the last 24 hours, bringing its current trading price to $12.43.

Additionally, KuCoin announced the postponement of an Ask Me Anything (AMA) session with Polkadot, promising to reschedule the event at a later date.

The U.S. Department of Justice (DOJ) has accused KuCoin and its founders, Chun Gan and Ke Tang, of engaging in money laundering activities, violating the Bank Secrecy Act, and conducting unlicensed money transmission.

U.S. Attorney Damian Williams criticized KuCoin for allegedly flouting U.S. rules and regulations, while Deputy Special Agent in Charge for the U.S. Department of Homeland Security, Darren McCormack, described the exchange’s operations as part of a large-scale criminal conspiracy.

According to reports from Chinese crypto journalist Wu Blockchain, KuCoin is reportedly considering ceasing operations and selling the exchange in 2023 due to ongoing legal issues in the U.S. and China.

On March 26, KuCoin and its founders were formally charged with criminal and civil lawsuits by the U.S. government. Gan and Tang, who are Chinese citizens, are currently evading authorities and could face up to 10 years in prison if convicted.

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