KuCoin Operator Fined $500,000 by CFTC and Permanently Barred From U.S. Market
KuCoin operator Peken Global Limited has agreed to pay a $500,000 civil penalty to the Commodity Futures Trading Commission for operating an unregistered offshore commodities exchange that served U.S. customers.
The settlement was announced by the CFTC on Monday as part of a consent order that fully resolves the agency’s claims against the company. Peken Global agreed to the settlement without admitting or denying the allegations.
Cooperation Reduced Additional Penalties
Because the company cooperated with the investigation, regulators did not require KuCoin’s parent company to return profits earned during the period under investigation, which covered July 2019 to June 2023. The decision reflected the company’s cooperation with enforcement authorities.
Settlement Follows Larger DOJ Case
The CFTC penalty comes after a much larger case brought by the U.S. Department of Justice.
In January 2025, Peken Global pleaded guilty to operating an unlicensed money transmitting business. The DOJ case resulted in:
- $112.9 million criminal fine
- $184.5 million in forfeiture
- Total DOJ penalties: approximately $297.4 million
According to the DOJ, KuCoin had approximately 1.5 million registered users in the United States and earned at least $184.5 million in fees from U.S. customers.
The investigation also found that KuCoin promoted its platform as operating without a Know Your Customer (KYC) program and only implemented KYC procedures in August 2023.
Total Enforcement Cost Near $298 Million
The CFTC’s $500,000 fine takes into account the earlier DOJ penalties, bringing the total enforcement cost for KuCoin to nearly $298 million.
In addition to the financial penalty, the settlement permanently bars KuCoin from operating in the United States, marking a significant regulatory action against offshore crypto exchanges serving U.S. customers without proper registration.
