The U.S. Department of Justice has accused Kucoin Exchange and its co-founders, Chun Gan and Ke Tang, of violating laws in an attempt to establish a prominent trading platform in the cryptocurrency market. The allegations suggest that Kucoin facilitated the transfer of approximately $4 billion in illicit funds, breaching the Bank Secrecy Act.

United States Attorney for the Southern District of New York, Damian Williams, along with other regulators, have leveled charges against Kucoin, Gan, and Tang for allegedly operating an unlicensed money-transmitting business and breaking the Bank Secrecy Act. This marks the latest legal action taken against a trading platform since Binance's $4.3 billion settlement in the last quarter of 2023.

The Department of Justice has highlighted that Kucoin facilitated daily trades amounting to billions and annual trades in the trillions, engaging in activities that facilitated money laundering. The accusations further claim that Kucoin was involved in transferring illicit funds totaling $4 billion, with U.S. regulators pointing to the provision of spot trading and futures brokerage services to American clients as evidence.

Records show that Gan and Tang were aware of the necessity to comply with U.S. regulations but failed to register with the appropriate authorities, despite their operations in the country. Additionally, they did not implement adequate Know-Your-Customer (KYC) systems until at least July 2023.