KuCoin Hit with Permanent U.S. Ban and $300M in Penalties

Core Viewpoint - The U.S. Court for the Southern District of New York has issued a permanent injunction against Peken Global Limited, operator of the KuCoin cryptocurrency exchange, due to allegations of allowing U.S. residents to trade on its unregistered offshore platform [1]. Key Penalties and Terms - Peken Global is required to pay a civil penalty of $500,000 and cease all unregistered U.S. operations, effectively banning U.S. users unless the exchange registers with the CFTC [6]. - The CFTC's investigation revealed that KuCoin operated as an unregistered foreign board of trade, allowing U.S. customers to generate approximately $110 million in trading fees through futures, swaps, and leveraged transactions [2]. Cooperation and Parallel Criminal Case - In a parallel criminal case, Peken Global pleaded guilty to operating an unlicensed money-transmitting business, resulting in nearly $300 million in fines and forfeitures [3]. - The CFTC decided not to seek additional disgorgement in the civil matter due to the firm's cooperation with the investigation [3]. Resolution of Defendants - The court dismissed all claims against other related KuCoin entities, including Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited [4]. - Peken Global entered the settlement without admitting or denying the CFTC's specific allegations, effectively concluding the litigation that began in March 2024 [4].