The U.S. Department of Justice has accused KuCoin and its founders of involvement in money laundering, violating the Bank Secrecy Act and unlicensed money transmission regulations. The DOJ claims that KuCoin’s founders, Chun Gan and Ke Tang, attempted to conceal U.S. customers to avoid AML and KYC requirements.

According to the DOJ, KuCoin operated without the necessary license for a money-transmitting business, breaching the Bank Secrecy Act. U.S. Attorney Damian Williams highlighted KuCoin’s disregard for laws and regulations, with transactions involving over $5 billion in potentially suspicious funds.

Following the news, the price of KuCoin’s token (KCS) dropped by 5%. The Deputy Special Agent in Charge for the U.S. Department of Homeland Security, Darren McCormack, emphasized the seriousness of the indictment, describing KuCoin’s operations as a massive criminal conspiracy.

Gan and Tang, Chinese citizens, are currently at large and could face up to 10 years in prison. The charges reflect a significant crackdown on illicit activities within the cryptocurrency industry.

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