The operator of the OKX crypto exchange will pay more than $504 million in fines and fees after admitting breaking US anti-money laundering laws.
OKX operator Aux Cayes Fintech pled guilty today to one count of operating an unlicensed money transmitting business.
OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform.
Since 2017, the Seychelles-based outfit has had an official policy of preventing US persons from transacting on its exchange.
But, says the Department of Justice, contrary to this policy, OKX "sought out" customers in the US, serving retail and institutional users that engaged in over one trillion dollars’ worth of transactions. These transactions generated hundreds of millions of dollars in trading fees and profits for OKX.
It did this without registering as a money services business with FinCEN, as required by law, say prosecutors.
For several years, the firm let retail customers create an account, receive and transfer funds, and place trades without completing a KYC process. Even when this changed, OKX employees sometimes advised customers how to provide false information to circumvent the KYC process.
Acting US Attorney Matthew Podolsky says: “For over seven years, OKX knowingly violated anti-money laundering 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."