OKX pleaded guilty to operating as an unlicensed money transmitting business and will pay a $84 million fine, in addition to foregoing $421 million in commission fees from U.S. customers.
According to an official statement from OKX, the company acknowledged that “legacy compliance gaps” had allowed some US customers to trade on its global platform in the past. However, OKX noted that these users, who represented only a small portion of its overall customer base, are no longer active on the platform. The company also noted that the settlement does not include any claims of customer harm, criminal charges against employees, or the appointment of a government monitor.
The lost funds primarily come from a small number of institutional clients. In response to the compliance deficiencies, OKX has voluntarily retained a compliance consultant to enhance its regulatory framework and has committed to continuing these efforts going forward.
“This settlement reflects growth and positions OKX to continue working with regulators and developing solutions that benefit our clients and the crypto market at large,” the company said. “For more than seven years, OKX knowingly violated anti-money laundering laws and failed to implement policies necessary to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars in questionable transactions and criminal proceeds,” said Acting U.S. Attorney Matthew Podolsky.
“Today’s criminal charges and sentences underscore that there will be consequences for financial institutions that exploit U.S. markets but violate the law by allowing criminal activity to continue.”
*This is not investment advice.
