Peken Global Limited, the parent company of cryptocurrency exchange KuCoin, has agreed to pay a $500,000 civil penalty to settle charges with the U.S. Commodity Futures Trading Commission (CFTC) over operating an unregistered offshore commodity exchange. The CFTC announced on Monday that a consent order had been entered, closing all the agency's claims.
Under the settlement, Peken Global neither admits nor denies the allegations. Due to its cooperation during the investigation, the regulator did not demand disgorgement of profits earned between July 2019 and around June 2023. The court also factored in a $30 million fine previously paid to the Department of Justice for running an unlicensed money transmitting business when setting the $500,000 penalty.
Permanent Ban for KuCoin, Parallel Pressure on Kraken
The consent order "permanently enjoins Peken Global from future violations," effectively barring KuCoin from serving Americans unless it obtains necessary approvals. The exchange also faces heat in Dubai, where regulators said it operated "without the necessary regulatory approvals" while misrepresenting its licensing status.
Separately, rival exchange Kraken faces its own U.S. regulatory battle. The CFTC sued Kraken in March 2024 for operating an unregistered platform and lacking adequate oversight, later seeking severe punishments and permanent injunctions. The agency claimed Kraken failed to implement proper KYC procedures and acted as an unregistered futures commission merchant or foreign board of trade without legal clearance for U.S. customers.
Both cases highlight the tightening compliance requirements for crypto exchanges in the U.S. KuCoin settled its past liabilities with a modest fine but at the cost of exiting the American market, while Kraken's litigation remains unresolved.