- $500,000 penalty paid by KuCoin’s parent to settle CFTC case
- Case resolved via consent order in US District Court, Southern District of New York
- No admission of guilt by Peken Global Limited
- No disgorgement required due to cooperation with investigation
- Follows $300 million DOJ penalty in January 2025
- Allegations include unregistered exchange operations and weak KYC controls
KuCoin Settles CFTC Charges
The parent company of crypto exchange KuCoin, Peken Global Limited, has agreed to pay a $500,000 civil penalty to settle charges brought by the US Commodity Futures Trading Commission (CFTC). According to the CFTC, the US District Court for the Southern District of New York entered a consent order resolving all claims against the company. The regulator had alleged that KuCoin operated an unregistered offshore commodities exchange.
Peken Global Limited agreed to the settlement without admitting or denying the allegations. The company was also not required to disgorge profits earned between July 2019 and June 2023, with the CFTC citing its cooperation during the investigation.
Penalty Linked to Prior DOJ Case: The CFTC stated that the $500,000 penalty reflects KuCoin’s earlier resolution of a parallel case with the Department of Justice (DOJ). In January 2025, KuCoin pleaded guilty and agreed to pay a $300 million penalty in connection with operating an unlicensed money transmitter business. The earlier enforcement action addressed similar conduct.
Allegations and US Access Restrictions
In March 2024, the CFTC outlined its lawsuit against KuCoin, seeking significant penalties including potential trading bans involving multiple affiliated entities.
The regulator alleged that KuCoin implemented inadequate know-your-customer (KYC) procedures and failed to prevent US users from accessing its platform. It also charged the company with failing to register as a futures commission merchant or a foreign board of trade. The case involved multiple entities associated with KuCoin’s operations, including Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited.
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