Crypto exchange OKX will pay $500m after pleading guilty to violating US anti-money laundering (AML) laws.
Aux Cayes Fintech, the company behind OKX, has pled guilty to operating the exchange in the US without the correct licence. All financial institutions in the country must register with the US Department of Treasury’s Financial Crimes Enforcement Network as a money services business and comply with federal AML laws.
Acting US Attorney Matthew Podolsky, commented: “For over seven years, OKX knowingly violated AML laws and avoided implementing required policies to prevent criminals from abusing our financial system.
“As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds. Today’s guilty plea and penalties emphasise that there will be consequences for financial institutions that avail themselves of US markets but violate the law by allowing criminal activity to continue.”
Despite not registering as a money services business, OKX served US-based customers since 2018. While the company’s policy prohibits US persons from transacting on its platform, VPN technology could be used to circumvent measures in place.
Additionally, from 2017 to approximately 2022, OKX allowed customers to create an account, receive and transfer funds and place trades without completing a KYC process. This meant that the platform facilitated transactions on behalf of unidentified individuals.
James E. Dennehy, FBI Assistant Director in Charge, said: “For years, OKX flagrantly violated US law, actively seeking customers in the United States – including here in New York – and even going so far as to advise individuals to provide false information to circumvent requisite procedures.
“Furthermore, in their failure to adhere to US law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”
In addition to the guilty plea, OKX also agreed to criminally forfeit $420.3m and pay a penalty of approximately $84.4m. The company was given a 25% reduction off the bottom of the otherwise applicable recommended fine range due to its cooperation throughout the investigation.
