Cryptocurrency exchange OKX has agreed to pay over $500 million in penalties after pleading guilty to violating U.S. anti-money laundering laws.
U.S. Authorities Crack Down on OKX
The U.S. Department of Justice and FBI accused Seychelles-based OKX of failing to comply with U.S. regulations. The penalty of over $504 million includes $420.3 million in forfeiture and an $84.4 million fine, with a commitment to retain an external compliance consultant until 2027.
OKX’s Compliance Failures Exposed
Despite an official policy against U.S. users, OKX allowed U.S. customers on its platform. They were encouraged to use VPNs and advised on falsifying KYC details. The exchange processed over $1 trillion in transactions from U.S. clients.
OKX’s U.S. Presence and Marketing Strategy
OKX aggressively marketed its services in the U.S., sponsoring events and utilizing U.S.-based affiliate marketers to promote the platform. This included promotional videos instructing users on how to bypass restrictions.
With this settlement, OKX commits to enhancing its compliance procedures and continuing cooperation with U.S. authorities, focusing on adherence to financial regulations.
