Cryptocurrency exchange OKX has agreed to pay over $500 million in penalties after pleading guilty to operating an unlicensed money-transmitting business in the U.S. The U.S. Department of Justice and FBI accused the firm of violating anti-money laundering laws.
U.S. Authorities Crack Down on OKX’s Regulatory Breaches
Despite having an official policy against U.S. users, OKX allegedly allowed American customers to access its platform by encouraging VPN use to bypass geographic restrictions and providing guidance on falsifying KYC details. The exchange failed to register with FinCEN as a money services business, processing over $1 trillion in transactions from U.S. customers. Authorities noted that OKX facilitated over $5 billion in suspicious and criminal transactions.
OKX’s Compliance Failures Exposed
OKX's failure to implement proper AML and KYC measures allowed users to create accounts without identity verification until 2022. Even after KYC requirements were introduced, some OKX employees allegedly advised U.S. users on how to bypass these checks. Reports highlighted instances where an OKX employee told a U.S.-based customer to enter a random country. Additionally, OKX continued to allow U.S. institutional investors to trade despite knowing registration with FinCEN was required.
OKX’s U.S. Presence and Marketing Strategy
Though officially banning U.S. users, OKX aggressively marketed its services in the U.S., sponsoring the Tribeca Film Festival in New York and using U.S.-based affiliate marketers. OKX also produced promotional videos instructing users on how to bypass restrictions. Institutional U.S. clients generated significant trading volumes for OKX.
OKX has agreed to the settlement terms, which include paying over $504 million in penalties and retaining compliance oversight until 2027. This agreement is part of a broader crackdown on crypto exchanges failing to comply with U.S. financial regulations.
