The Commodity Futures Trading Commission (CFTC) has imposed a $500,000 fine and restrictions on the operator of crypto exchange KuCoin, banning it from allowing US users to trade on its platform without proper registration.
The CFTC says a federal court in the Southern District of New York has entered a consent order against Peken Global Limited, the entity behind KuCoin.
The order shows that the company granted U.S. participants access to its trading platform without registering as a foreign trade board.
The court imposed a civil monetary penalty of $500,000 and permanently barred Peken Global from future violations.
The order also prohibits the company from allowing US users to conduct trading unless it complies with CFTC registration requirements.
Regulators noted that no disgorgement was imposed, citing the company’s cooperation with the investigation and related proceedings.
In a parallel criminal case, Peken Global pleaded guilty to operating an unlicensed money transmission business.
The action resolves part of a broader case brought by the CFTC against KuCoin entities, which alleged multiple violations of the Commodity Exchange Act.
According to the agency, KuCoin offered derivatives and leveraged trading products to US clients without proper registration and failed to implement effective know-your-customer controls.
The complaint also alleged that despite alleged restrictions, US users were able to access the platform, including through common tools such as VPNs, and that the exchange failed to adequately prevent such activity.
The latest order resolves the CFTC’s claims against Peken Global, while other defendants in the case were dismissed with prejudice.
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