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OKX’s Aux Cayes FinTech Co. Ltd agreed to pay over $500 million worth of fines for operating an unlicensed money-transmitting business.
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Aux Cayes FinTech Co. Ltd, the operator of the cryptocurrency exchange OKX, has pleaded guilty to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws, and has agreed to pay over $500 million worth of penalties to resolve the matter.
OKX’s Aux Cayes FinTech Co. Ltd settled the charges following an investigation carried out by the US Department of Justice, paying $84 million worth of penalties while forfeiting $421 million worth of fees earned from mostly institutional clients.
”The Company acknowledged that, as a result of legacy compliance gaps, certain U.S. customers had in the past traded on the company’s global platform,” OKX said in a Feb. 24 statement.
OKX said the number of US clients involved amounted to a small percentage of the crypto exchange’s total customer base and that none of these customers remain on its platform.
Source: OKX
The crypto exchange noted there were no allegations of customer harm and no charges against any OKX employee.
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OKX said it would seek out a compliance consultant to remedy the issues and bolster its regulatory compliance program.
“Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies,” said OKX’s CEO Star Xu in a Feb. 24 X post.
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This article first appeared at Cointelegraph.com News
