KuCoin permanently banned from U.S. after $500K regulatory penalty
KuCoin, one of the world's largest cryptocurrency exchanges, has been permanently barred from operating in the United States. A federal court approved a settlement requiring its operator, Peken Global Limited, to pay fines and exit the American market for good. The case follows a guilty plea earlier this year for running an unlicensed money-transmitting business. The Commodity Futures Trading Commission (CFTC) first sued KuCoin and three linked entities in March 2024. Regulators accused the exchange of operating an unregistered offshore platform while illegally serving U.S. customers. Court documents showed KuCoin had around 1.5 million American users and collected at least $184.5 million in fees from them.
In January 2025, KuCoin pleaded guilty to operating without proper licensing. The company faced nearly $297 million in fines and forfeitures as part of a Department of Justice settlement. Despite introducing know-your-customer checks in August 2023, these rules were never applied to existing accounts. The latest CFTC order imposes an additional $500,000 civil penalty. However, the agency did not pursue further financial disgorgement, citing Peken's cooperation and the substantial penalties already paid. The ruling now makes KuCoin's earlier U.S. withdrawal permanent, cutting off its American business entirely. KuCoin, which brands itself as the 'People's Exchange,' operates from the Seychelles, Cayman Islands, and Singapore. It remains a major player globally, with a daily trading volume of around $1.7 billion.
The settlement closes a lengthy legal battle over KuCoin's unregistered operations in the U.S. The exchange must now comply with the permanent ban on serving American customers. No further regulatory actions against KuCoin or its affiliates have been announced since January 2025.
