The US Department of Justice has released an indictment against two KuCoin founders, Chun Gan and Ke Tang, for their alleged involvement in conspiring to conduct an unlicensed money transmission business and violating the Bank Secrecy Act (BSA).
The Department of Justice has also charged KuCoin with facilitating money laundering and terrorist financing by failing to implement an adequate AML program.
US Attorney Damian Williams has stated that KuCoin purposefully concealed the fact that a significant number of its users were from the US.
The company faces criminal charges for operating without a license and violating the BSA.
According to Williams, KuCoin's failure to enforce basic anti-money laundering policies allowed the platform to operate covertly and become a hub for illicit money laundering.