The CFTC, that tall, peppery watchdog of the financial jungle, whacked KuCoin’s operator with a $500,000 penalty and a raft of restrictions, forbidding US users from trading there until proper registration is tucked into place.
In a courthouse chorus in the Southern District of New York, a consent order was hammered out against Peken Global Limited, the sly creature behind KuCoin.
The order found that the company let US participants slip onto its trading stage without registering as a foreign board of trade. Naughty, naughty, says the judge.
The court has slapped the $500,000 civil monetary penalty onto the company and issued a permanent injunction against Peken Global for future mischief.
The order also forbids the firm from permitting US users to trade unless it complies with CFTC registration requirements – a lot of paperwork, but less dancing with danger.
Regulators noted that disgorgement was not imposed, praising the company for its cooperation in the investigation and related proceedings.
In a parallel criminal case, Peken Global pleaded guilty to operating an unlicensed money transmitting business, which is about as legal as a goose in a tiger suit.
The action resolves part of a broader case brought by the CFTC against KuCoin entities, which alleged multiple violations of the Commodity Exchange Act.
According to the agency, KuCoin offered derivatives and leveraged trading products to US customers without proper registration and failed to implement effective know-your-customer controls – a bit like leaving the door open to a dragon’s lair.
The complaint also alleged that US users were able to access the platform despite supposed restrictions, including through common tools such as VPNs, and that the exchange did not adequately prevent such activity.
The latest order resolves the CFTC’s claims against Peken Global, while other defendants in the case were dismissed with prejudice – a tidy ending for some, a dull one for others.
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2026-04-02 10:22