The post US DOJ Settles $500M with OKX Affiliate for Compliance Issue appeared on BitcoinEthereumNews.com.

US Department of Justice (DOJ) and Aux Cayes FinTech Co. Ltd., an affiliate of the OKX crypto exchange, have reached a $500 million settlement for unlicensed money transmission business. US DOJ Reach Settlement With OKX Affiliate  OKX reached a settlement of over $500 million, which includes $84 million in penalties and the forfeiture of around $421 million in fees earned from US customers. The heavy settlement comes after OKX failed to obtain the necessary license for operating as a money transmitter in the US. The DOJ’s investigation revealed that OKX had been actively pursuing US customers despite claiming to block US access since 2017. According to investigations, OKX employees were reportedly advising users to provide false information about their location in order to evade restrictions. Moreover, the firm was engaged in US advertising, such as sponsoring the Tribeca Film Festival, and facilitating ways for US residents to use VPNs to access the platform. Though the DOJ emphasized no customer harm, the case highlights the serious legal and regulatory risks crypto exchanges face when operating across borders without following local laws.  “In recognition of these gaps, the Company, on its own initiative, voluntarily retained a compliance consultant to help remedy the issues and enhance its overall compliance program, and plans to continue with this consultant into the future,” the company stated. The settlement also shows the growing scrutiny and enforcement actions from US authorities aimed at cryptocurrency companies. OKX has since taken steps to address these compliance issues, including retaining a compliance consultant to help improve its practices in the future.  Also Read: OKX Issues Warning Over Malicious Mining Software ‘Bom’ Linked to Theft Source: https://www.cryptonewsz.com/us-doj-settles-500m-with-okx-affiliate/

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Filed under: News - @ February 25, 2025 1:14 am