The US government has filed criminal charges against Chun Gan and Ke Tang, the creators of KuCoin.
Following the criminal charges levied against KuCoin’s founders, Chun Gan and Ke Tang, by US authorities, the prominent digital asset trading platform saw a dramatic increase in withdrawals.
The charges against the two founders were as follows, according to an official statement: “conspiring to operate an unlicensed money transmitting business and to violate the Bank Secrecy Act by willfully failing to maintain an adequate anti-money laundering (“AML”) program intended to prevent the use of KuCoin for money laundering and terrorist financing, failing to maintain adequate processes for verifying the identity of customers, and failing to report any suspicious activity.”
New York Field Office of Homeland Security Investigations Acting Special Agent in Charge Darren McCormack and United States Attorney Damian Williams for the Southern District of New York jointly unsealed the indictment on March 26. Williams made his feelings known to cryptocurrency exchanges in the US when he said:
“Exchanges for cryptocurrencies, such as KuCoin, cannot be hypocritical. Other cryptocurrency exchanges should take note of today’s indictment: plain and simple, you must respect U.S. law if you want to service U.S. consumers.”
A major worry in the market was the withdrawal of almost $500 million from KuCoin due to the founders’ prosecution, as brought to light by blockchain analytical company Spot On Chain on social networking platform X.
Despite early reports of issues, Spot On Chain has verified that customers may now successfully withdraw cash from the exchange.
Among the most popular tokens removed from KuCoin, you may find 274 million USDT, 15,500 ETH, 50 million ONDO, 12 million Fetch.ai, and 95.38 million GHX. According to the platform’s research, the KuCoin hot wallet is still holding over $3.6 billion in Ethereum holdings.
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