KuCoin Ordered to Pay $500,000 CFTC Penalty and Block US Traders

A federal court in the Southern District of New York approved a CFTC consent order requiring KuCoin operator Peken Global Limited to pay a $500,000 civil penalty and permanently block U.S. traders from its platform unless it registers as a foreign board of trade. The order converts KuCoin's earlier temporary two-year U.S. withdrawal into an indefinite ban and follows a separate January 2025 DOJ settlement where KuCoin pleaded guilty to operating an unlicensed money transmitting business, paying nearly $297 million in penalties. The CFTC waived disgorgement citing Peken Global Limited's cooperation and the existing DOJ forfeiture order, making the $500,000 penalty relatively modest. KuCoin had served approximately 1.5 million U.S. users and generated at least $184.5 million in fees from Americans, while failing to apply know-your-customer requirements to existing accounts when it introduced them in August 2023—a failure that became central to the enforcement actions.

CFTC consent order and permanent U.S. market ban

• ▪A federal court approved a CFTC consent order permanently barring KuCoin operator Peken Global Limited from allowing U.S. users on its platform unless Peken Global Limited registers as a foreign board of trade
• ▪The CFTC consent order against Peken Global Limited was entered in the Southern District of New York
• ▪The CFTC did not seek disgorgement from Peken Global Limited, citing Peken Global Limited's cooperation and the forfeiture order entered in the parallel DOJ case
• ▪The CFTC consent order requires Peken Global Limited to pay a $500,000 civil penalty
• ▪The court dismissed remaining claims against affiliated entities Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited

Prior criminal case and financial penalties

• ▪The relatively small CFTC penalty against Peken Global Limited reflects that much of the financial punishment was already imposed in the criminal proceeding
• ▪KuCoin pleaded guilty in January 2025 to operating an unlicensed money transmitting business
• ▪KuCoin's January 2025 guilty plea carried nearly $297 million in penalties and forfeitures

KuCoin's U.S. operations and compliance failures

• ▪KuCoin had roughly 1.5 million registered U.S. users according to the DOJ
• ▪KuCoin introduced know-your-customer requirements in August 2023
• ▪KuCoin generated at least $184.5 million in fees from U.S. users according to the DOJ
• ▪KuCoin did not apply know-your-customer requirements to existing accounts when KuCoin introduced the requirements in August 2023

Perspective of CFTC

• ▪The CFTC considered the DOJ forfeiture order when determining not to seek disgorgement from Peken Global Limited
• ▪The CFTC waived disgorgement from Peken Global Limited due to Peken Global Limited's cooperation with the investigation

Perspective of KuCoin and Peken Global Limited

• ▪KuCoin's $500,000 CFTC penalty is relatively modest compared to the $297 million DOJ settlement

Perspective of U.S. cryptocurrency traders

• ▪Approximately 1.5 million U.S. users were registered on KuCoin before the enforcement actions
• ▪U.S. traders are permanently barred from accessing KuCoin unless Peken Global Limited registers as a foreign board of trade
• ▪KuCoin generated $184.5 million in fees from U.S. users who used the unregistered platform