US Federal Prosecutors nominated charges against the KuCoin cryptocurrency exchange and its two founders, entrepreneurs Chun Gan and Ke Tang.
According to a statement from law enforcement agencies, the suspects conspired to conduct an unlicensed money transfer business in the United States. The company and its co-founders are also accused of violating the Bank Secrecy Act and defrauding investors.
Authorities believe that KuCoin management deliberately did not implement KYC (Know Your Customer) customer identification and AML programs. The company avoided these procedures even after its audience exceeded 30 million users, the press release says.
Law enforcement claims that KuCoin should have received permission to operate from the Financial Crimes Enforcement Network (FinCen) and the US Commodities and Futures Trading Commission (CFTC). However, the company ignored these demands, the published statement noted.
The co-founders of the exchange, Gan and Tang, are Chinese citizens. They were charged with two counts of violating the Bank Secrecy Act and illegal activities. For each of them, entrepreneurs face up to five years in prison.
Entities associated with KuCoin's activities are also charged with four counts of US law. The penalty for each violation is from five to ten years in prison.
Source: Cryptocurrency
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