Aux Cayes FinTech Co. Ltd, affiliated with OKX, admitted guilt in violating US anti-money laundering laws and agreed to pay over $500 million in a settlement with the Department of Justice.
Regulatory Compliance Pressure
The investigation revealed that some US traders accessed the company’s global platform due to past compliance gaps. Aux Cayes highlighted that these users have been removed. The company voluntarily engaged a compliance consultant to address issues and strengthen oversight.
Seven Years of Regulatory Failures
The Department of Justice accused OKX of years of AML compliance failures. The platform reportedly facilitated over $5 billion in suspicious transactions. Company employees assisted users in bypassing KYC checks.
Background and Previous Legal Troubles
OKX has previously faced regulatory issues in South Korea, where the crypto exchange was improperly registered. The company advertised in the US and catered services to clients despite being banned.
The OKX case underscores the importance of stringent adherence to international AML laws, necessitating companies to take greater accountability in ensuring safe financial transactions.
