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OKX, one of the world’s largest cryptocurrency exchanges, has been hit with a $505 million penalty after admitting to violating U.S. anti-money laundering (AML) regulations. The platform’s operator, Aux Cayes Fintech, pleaded guilty to operating an unlicensed money transmission business and failing to implement necessary compliance measures.
Despite its official policy since 2017 of restricting U.S. users from transacting on its platform, the Seychelles-based exchange actively sought out American retail and institutional customers. According to the U.S. Department of Justice (DOJ), these users collectively conducted over $1 trillion in transactions, generating hundreds of millions of dollars in fees and profits for OKX—without registering as a money services business with FinCEN, as required by law.
Additionally, the DOJ’s investigation revealed that for several years, OKX allowed users to open accounts, deposit funds, and trade without completing Know Your Customer (KYC) verification. Even after implementing KYC protocols, some employees allegedly advised customers on how to bypass verification requirements using false information.
Acting U.S. Attorney Matthew Podolsky emphasized the severity of these violations, stating:
“For over seven years, OKX knowingly violated anti-money laundering laws and failed to enforce compliance measures, allowing criminals to exploit the financial system. As a result, over $5 billion in suspicious transactions and illicit funds flowed through the exchange.”
This case underscores the growing regulatory scrutiny on crypto platforms, reinforcing the need for compliance automation, AML enforcement, and regulatory reporting to prevent illicit financial activities in the evolving digital asset ecosystem.
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