CFTC-KuCoin Settlement Faces Delays Amid Policy Shift and Legal Challenges
- The settlement between KuCoin and the CFTC may be postponed due to the re-evaluation of crypto-related enforcement.
- KuCoin is still under scrutiny for violating U.S trading and anti-money laundering laws.
The planned settlement of the crypto exchange KuCoin with the US CFTC is expected to face delays due to a policy change at the CFTC. The policy change is now putting less emphasis on cases involving crypto firms under Trump’s administration.
John Murphy, a CFTC attorney, asked for extra time to have approval for a deal that held talks under Biden’s administration, as per the letter submitted by the attorney to District Judge Valerie on April 21.
Trump-Era Policy Change Slows Progress on Crypto Enforcement Cases
In March 2024, the CFTC claimed that the exchange, KuCoin, was often violating the Commodity Exchange Act (CEA) and CFTC regulations. Not only the CFTC, but the Justice Department has also charged the platform and its two founders with the claims of violating Anti-Money Laundering laws.
The Department also accused the platform of accumulating over $5 billion and sending over $4 billion in suspicious and criminal funds. In January, after the $297 million settlement with the Department of Justice, KuCoin agreed not to be involved in the US market for about two years.
The CFTC and KuCoin notified the court in December that they agreed to settle the case, but the terms and information in the proposal of the deal were not revealed. Last month, the exchange requested the judge for a 14-day stay.
The request for the stay was to pursue additional negotiations, quoting Trump’s executive order limiting enforcement actions in the digital asset sector. The Judge didn’t accept the request and instead asked for regular negotiation status updates.
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CFTC-KuCoin Settlement Faces Delays Amid Policy Shift and Legal Challenges
- The settlement between KuCoin and the CFTC may be postponed due to the re-evaluation of crypto-related enforcement.
- KuCoin is still under scrutiny for violating U.S trading and anti-money laundering laws.
The planned settlement of the crypto exchange KuCoin with the US CFTC is expected to face delays due to a policy change at the CFTC. The policy change is now putting less emphasis on cases involving crypto firms under Trump’s administration.
John Murphy, a CFTC attorney, asked for extra time to have approval for a deal that held talks under Biden’s administration, as per the letter submitted by the attorney to District Judge Valerie on April 21.
Trump-Era Policy Change Slows Progress on Crypto Enforcement Cases
In March 2024, the CFTC claimed that the exchange, KuCoin, was often violating the Commodity Exchange Act (CEA) and CFTC regulations. Not only the CFTC, but the Justice Department has also charged the platform and its two founders with the claims of violating Anti-Money Laundering laws.
The Department also accused the platform of accumulating over $5 billion and sending over $4 billion in suspicious and criminal funds. In January, after the $297 million settlement with the Department of Justice, KuCoin agreed not to be involved in the US market for about two years.
The CFTC and KuCoin notified the court in December that they agreed to settle the case, but the terms and information in the proposal of the deal were not revealed. Last month, the exchange requested the judge for a 14-day stay.
The request for the stay was to pursue additional negotiations, quoting Trump’s executive order limiting enforcement actions in the digital asset sector. The Judge didn’t accept the request and instead asked for regular negotiation status updates.
Highlighted Crypto News Today:
WazirX Awaits Crucial Court Ruling on May 13 to Restart Operations
Read More
KuCoin Lists Hyperlane (HYPER) Boosting Cross-Chain Interoperability