OKX, a cryptocurrency heavyweight, seems to have been playing a risky game, and Uncle Sam's not happy! Authorities allege that OKX has been dodging US laws like a pro, coaching customers on how to sneak past trading restrictions by fudging their info.
The drama thickens as Aux Cayes FinTech Co. Ltd, an OKX affiliate, confessed in court today to running an unlicensed money-transmitting operation, skirting around US anti-money laundering rules. Oops! In a move to make amends, they've agreed to cough up over $500 million to the Department of Justice. This hefty payout includes an $84 million slap-on-the-wrist penalty and the surrender of about $421 million in fees raked in from US customers.
The plot twist? The investigation revealed that some US traders managed to sneak into OKX's global platform, thanks to some past compliance hiccups. But fear not, Aux Cayes assures us that these sneaky users have since been shown the door.
Owning up to their regulatory slip-ups, OKX pointed out that these rogue traders were just a tiny fraction of their customer base. No staff members got personally called out, and no Big Brother monitor was slapped on as part of the deal.
To clean up their act, OKX's Aux Cayes is bringing in the big guns—a compliance consultant to patch up the holes and keep things shipshape.
In a statement, OKX acknowledged their partnership with the DOJ, highlighting their commitment to being a trustworthy crypto hub for millions around the globe. They started as a scrappy start-up and are now taking bold steps to fix any past oversights—talk about a comeback story!
But not everyone is impressed. US Attorney Matthew Podolsky accused OKX of brushing off anti-money laundering laws for over seven years, allegedly turning a blind eye to over $5 billion in suspicious transactions. Yikes! The authorities didn't hold back, accusing the company of bypassing Know Your Customer (KYC) regulations and even coaching US customers on how to fudge their nationality and ID numbers.
Despite officially locking US users out, OKX was still busy making waves stateside, sponsoring flashy events like the Tribeca Film Festival and using affiliate marketers to reel in new customers. They even offered incentives for users to recruit others, with some going as far as crafting public guides on using VPNs to access the platform. Oh, and let's not forget their cozy dealings with institutional clients in the US, one of whom reportedly handled over a trillion dollars in transactions.
This isn't OKX's first rodeo with legal troubles. Just last February, they were under the lens in South Korea for allegedly skipping proper registration protocols. It seems OKX has a knack for keeping life interesting! Keep your eyes peeled as this story unfolds.
