The parent company of crypto exchange KuCoin, Peken Global Limited, agreed to pay a $500,000 civil penalty to settle charges by the US Commodity Futures Trading Commission that it operated an unregistered offshore commodities exchange.
The US District Court for the Southern District of New York entered a consent order resolving all CFTC claims against Peken Global. The company agreed to the settlement without admitting or denying the CFTC’s allegations and avoided disgorgement of profits from the period cited in the complaint — roughly July 2019 through June 2023 — after cooperating with the agency’s investigation.
The CFTC said the $500,000 penalty reflected that KuCoin had already pleaded guilty and agreed to pay a $300 million fine in January 2025 in a parallel Department of Justice case that charged the firm with operating an unlicensed money transmitter business.
In its March 2024 complaint, the CFTC alleged KuCoin used “sham” know-your-customer procedures, failed adequately to prevent US-based customers from accessing the platform, and did not register as a futures commission merchant or foreign board of trade. The agency had sought strong relief, including permanent trading bans, against Peken Global and affiliated companies Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited.
Under the settlement, Peken Global is barred from allowing US residents to trade on KuCoin unless it registers with the CFTC as a foreign board of trade.
Cointelegraph reached out to KuCoin for comment.
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