365Crypto
Guilty Plea and Massive Fines
OKX’s parent company, Aux Cayes FinTech Co. Ltd, has pleaded guilty to running an unlicensed money-transmitting business¹. As part of the settlement, it will pay $505 million in penalties—$84 million in fines and $421 million in forfeited earnings.
Violations and Regulatory Issues
The U.S. Department of Justice (DOJ) found that OKX violated Anti-Money Laundering (AML)² laws, facilitating over $5 billion in suspicious transactions. Prosecutors accused the company of knowingly allowing illegal activity and even advising users on how to bypass verification rules.
OKX’s Response
OKX acknowledged past compliance failures but stated that only a small number of U.S. users were affected, and they have since been removed. The exchange emphasized that no customers were harmed and no employees faced charges.
To prevent future issues, OKX will hire a compliance consultant and strengthen its regulatory policies. CEO Star Xu expressed the company’s commitment to making OKX a leader in compliance across global markets.
Regulators Crack Down
U.S. officials, including Acting Attorney Matthew Podolsky and FBI Assistant Director James Dennehy, criticized OKX for disregarding financial laws. They warned that financial institutions violating U.S. regulations will face serious consequences.
The DOJ noted that OKX has officially prohibited U.S. users since 2017, but the violations took place from 2018 to early 2024.
¹ Money-transmitting business – A company that transfers money or digital assets between individuals or accounts.
² Anti-Money Laundering (AML) laws – Regulations designed to prevent illegal money transfers, fraud, and financial crimes.
