OKX Settles Crypto Compliance Violations with $505 Million Fine
Global crypto platform OKX has agreed to a $505 million penalty. the company pleaded guilty to operating an unlicensed money-transmitting business, violating U.S. Anti-Money Laundering laws.
This settlement stems from a U.S. Department of Justice inquiry. it revealed that some U.S. customers traded on OKX’s global platform from 2018 to early 2024, despite the company’s policy banning U.S. users since 2017.
OKX’s penalty includes an $84 million fine and the forfeiture of $421 million in fees from U.S. customers, mostly institutional. The parent company, Aux Cayes FinTech Co. Ltd., admitted compliance failures but noted no customer harm or employee charges.
OKX cooperated with the investigation and hired a compliance consultant to improve its practices. CEO Star Xi stated, “We aim to set the industry standard for compliance in international markets.”
Key improvements include:
- Investments in Know Your Customer procedures
- Enhanced AML instruments
- Transaction monitoring upgrades
- Financial crime investigations
This settlement marks a notable moment for the crypto sector as global regulators increase scrutiny on exchanges operating across multiple jurisdictions.
