Cryptocurrency exchange OKX has agreed to pay over $500 million in penalties for violating U.S. anti-money laundering laws.
U.S. Authorities Crack Down on OKX
The U.S. Department of Justice and FBI accused OKX of courting American customers without complying with anti-money laundering laws. The settlement involves a $420.3 million forfeiture and an $84.4 million fine, with the exchange retaining an external compliance consultant until February 2027.
Compliance Failures and AML Policies
OKX's failure to enforce AML and KYC rules enabled users to create accounts without verification until 2022. Even after implementing KYC, some employees allegedly advised users on bypassing checks. Reports indicate employees suggested using random countries for users in the U.S. to pass verification.
Marketing Strategy and Settlement Terms
Despite banning U.S. users officially, OKX heavily marketed its services in the U.S. through sponsorships and affiliate marketers. As part of the settlement, OKX will pay over $504 million in penalties while hiring a compliance consultant. The exchange has committed to cooperating with authorities.
The OKX case is part of a broader crackdown on crypto exchanges that do not adhere to U.S. financial regulations.
