OKX’s operating company, Aux Cayes FinTech Co. Ltd, has pleaded guilty to running an unlicensed money-transmitting business and agreed to a $505 million settlement with U.S. authorities. The settlement includes $84 million in penalties and the forfeiture of $421 million in transaction fees, mostly from institutional clients. The charges stem from legacy compliance gaps that allowed some U.S. customers to trade on the platform despite restrictions.
According to the U.S. Department of Justice, OKX knowingly violated anti-money laundering laws, facilitating over $5 billion in suspicious transactions. Investigators also found that the exchange advised users on ways to bypass compliance checks, further aggravating the violations. However, no allegations of customer harm or charges against OKX employees were filed.
The breaches reportedly occurred between 2018 and early 2024, even though OKX had policies preventing U.S. customers from accessing its services since 2017. Acting U.S. Attorney Matthew Podolsky emphasized that financial institutions operating in the U.S. must comply with regulations and that the penalties serve as a warning to others. The FBI also condemned the company’s actions, stating that regulatory breaches would not be tolerated.
OKX has committed to strengthening its compliance framework and hiring a consultant to address past shortcomings. CEO Star Xu stated that the company aims to become a leader in regulatory compliance across global markets. Despite the hefty settlement, OKX maintains that its U.S. customer base was minimal and has since been removed from the platform.
