KuCoin Agrees to $500K Settlement, Ending CFTC Case

KuCoin’s parent company, Peken Global Limited, has agreed to pay a $500,000 civil penalty to resolve a case brought by the CFTC over operating an unregistered offshore commodities exchange. The settlement was finalized by the US District Court for the Southern District of New York on Monday, resolving all claims against the firm.

Peken Global agreed to the settlement without admitting or denying the CFTC’s allegations. The company also avoided disgorging profits from July 2019 to June 2023 due to its cooperation with the investigation.

The $500,000 penalty reflects KuCoin’s prior legal compliance, as the company previously pleaded guilty and paid a $300 million fine in January 2025 under a parallel Department of Justice (DOJ) case for operating an unlicensed money transmitter business.

Restrictions and Regulatory Compliance

In March 2024, the CFTC had accused KuCoin of using “sham” know-your-customer procedures and failing to prevent US customers from accessing the platform. Peken Global, along with Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited, faced potential permanent trading bans.

Under the latest agreement, KuCoin is prohibited from allowing US residents to trade unless it registers with the CFTC as a foreign board of trade.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.