OKX’s operator admitted to US AML violations, agreeing to pay $505 million in fines after facilitating illicit transactions.
OKX Admits to AML Violations
OKX’s operator, Aux Cayes FinTech Co, pleaded guilty to violating US anti-money laundering (AML) laws for over seven years. The Seychelles-based company will pay $505 million in fines and penalties.
Unlicensed Money Transmission Charge
A US District Court in Manhattan accepted the guilty plea, with Judge Katherine Polk Failla presiding. The company admitted to operating an unlicensed money transmission business while still serving US customers.
Regulators Expose Criminal Transactions
“For over seven years, OKX knowingly violated anti-money laundering laws,” said Acting U.S. Attorney Matthew Podolsky. The platform processed over $5 billion in suspicious transactions.
Massive Financial Penalties
The exchange will pay an $84 million criminal fine and forfeit $421 million in illicit gains. These penalties follow an extended investigation by US regulators.
FBI: OKX Actively Sought US Customers
“For years, OKX flagrantly violated U.S. law,” said James E. Dennehy of the FBI. The exchange allegedly encouraged US customers to falsify information to bypass regulations.
Unregistered Transactions Topped $1 Trillion
Despite its official policy against serving US customers, OKX facilitated over $1 trillion in unregistered transactions from 2018 to early 2024. These dealings generated millions in fees and profits.
OKX Employees Aided Customers in Bypassing KYC
Investigations revealed that OKX employees guided users on how to bypass KYC checks. Customers were advised to enter false country details and fake identification numbers.
OKX Expands in Europe Despite US Scrutiny
OKX recently obtained a MiCA license, allowing it to operate across the European Economic Area. The firm aims to expand its fully compliant crypto services in the region.
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