Seychelles-based cryptocurrency exchange OKX has pleaded guilty to operating an unlicensed money-transmitting business and agreed to a $504 million settlement, according to a press release from the U.S. Attorney’s Office.
According to the lawsuit, between 2017 and 2024, OKX allowed U.S. users to trade on its platform despite policies stating otherwise. The exchange allegedly provided guidance to U.S. customers on how to bypass restrictions and access its services.
“For years, OKX violated U.S. law, actively seeking customers in the United States…and even going so far as to advise individuals to provide false information to circumvent requisite procedures,” said Acting U.S. Attorney Matthew Podolsky. “As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.”
The lawsuit further claims that OKX created instructional materials to help U.S. users open accounts on its platform. In one instance, an OKX employee allegedly advised a U.S. customer to enter a different country of residence and use a random ID number to complete the registration process.
This settlement follows similar enforcement actions in the cryptocurrency industry. In 2023, Binance, the world’s largest crypto exchange, pleaded guilty to comparable charges and agreed to a $4.3 billion fine. Binance founder Changpeng “CZ” Zhao resigned from his role as CEO and served a four-month jail sentence.
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