OKX Crypto Exchange, a subsidiary of the US Department of Justice (DOJ) and AUX CAYES FINTECH Co., Ltd. LTD. has reached an agreement of $ 500 million for the money transmission business without license.
Our doj Reach to settle OKX affiliate
OKX has reached more than $ 500 million, including $ 88 million punishment and about $ 421 million in US customers. Heavy settlements occur after OKX does not get the license needed to operate as a money transmitter in the United States.
According to DOJ’s survey, OKX is actively pursuing American customers, despite claiming that it has blocked US access since 2017. According to the survey, OKX staff advised users to provide false information about their position to avoid restrictions. The company also sponsored the Tribeca Film Festival and engaged in US advertising, such as promoting a way for US residents to access the platform using VPN.
DOJ did not emphasize the damage of customers, but this case emphasizes the serious legal and regulatory risks facing encryption exchange when operating across the border without following local laws.
“In recognition of this gap, we have voluntarily maintained compliance consultants in their own initiatives, solving problems, improving the overall compliance program, and planning to continue in this consultant and the future.
This agreement also shows the US authorities’ monitoring and execution measures aimed at the Cryptocurrency company.
OKX later took measures to solve these compliance issues, such as maintaining a compliance consultant that will help to improve future practices.
Also read: OKX connects the warning problem ‘BOM’ for malicious mining software to theft.