Benzinga – Editor’s note: The story has been updated with a statement from KuCoin.
The U.S. Department of Justice unsealed an indictment Tuesday against prominent crypto exchange KuCoin and two of its founders, Chun Gan and Ke Tang.
What Happened: The Justice Department alleges KuCoin conspired to operate as an unlicensed money transmitter and violated the Bank Secrecy Act by failing to enact proper anti-money laundering controls.
KuCoin and its founders engaged in a concerted effort to bypass U.S. anti-money laundering laws, allowing the platform to grow significantly by catering to a large U.S. customer base without adhering to required regulatory standards, the DOJ said in a press release.
The indictment accuses KuCoin of failing to deploy necessary anti-money laundering and know-your-customer (KYC) protocols. AML rules prevent platforms from being used for illicit activities such…
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