OKX Settles with U.S. Authorities Over Licensing Issues
OKX, recognized as one of the leading cryptocurrency exchanges globally, has reached a settlement with U.S. authorities regarding its failure to secure the necessary licenses to operate as a money transmitter. This announcement was made public on Monday.
The settlement specifically involves Aux Cayes FinTech Co. Ltd., an affiliate of OKX, which has agreed to pay over $500 million in penalties and forfeited fees, as detailed in a press release. According to a source familiar with the matter, this resolution addresses allegations of fraudulent and non-compliant activities that have reportedly occurred at the exchange in previous years.
Additionally, OKcoin, the American division of OKX, has been under scrutiny as it received a subpoena from the Commodity Futures Trading Commission (CFTC) on February 24 of last year. CoinDesk was able to obtain the cover page of this subpoena, which alludes to “certain persons engaged in fraud and other unlawful conduct related to digital asset transactions.”
Another source indicated that the CFTC’s investigation into OKcoin is connected to a significant flash crash of the exchange’s native token, which transpired following a sudden decline in the price of the OKB token on January 23, 2024. In response, OKX assured its users that they would be compensated for the losses incurred as a result of this incident.
In an effort to bolster internal ethics and compliance, an internal document shared with OKX staff in January 2024 introduced “a new ethics and compliance helpline.” This helpline aims to provide a confidential and secure environment for employees to raise any concerns or issues pertaining to ethical conduct, policy violations, or suspected illegal activities.
As of now, representatives from OKX have not provided immediate comments regarding these developments. Meanwhile, a spokesperson from the CFTC has also refrained from making any statements on the matter.
