KuCoin operator prohibited from operating in the U.S. following CFTC directive, in light of $297 million DOJ case.

Peken Global Limited, the operator of KuCoin, is unable to accommodate U.S. users on its platform without registering as a foreign board of trade.

Key points:

• A federal court has sanctioned a CFTC consent order that permanently prohibits KuCoin operator Peken Global Limited from permitting U.S. users on its platform unless it registers as a foreign board of trade.
• The order enforces a civil penalty of $500,000 and follows KuCoin’s January 2025 guilty plea in a separate criminal matter that resulted in nearly $297 million in penalties and forfeitures.
• Previously, KuCoin had approximately 1.5 million U.S. users and accrued at least $184.5 million in fees from them; the new injunction transitions what was a temporary U.S. withdrawal into a permanent cessation of its American operations.

Peken Global Limited, the operator of KuCoin, has been restricted from allowing U.S. users on its platform after a federal court sanctioned a Commodity Futures Trading Commission consent order, concluding the exchange’s enforcement issues in the U.S.

This order, issued in the Southern District of New York, mandates Peken to pay a civil penalty of $500,000 and forbids it from providing trading access to U.S. participants unless it registers as a foreign board of trade. Significantly, it eliminates the time restrictions from KuCoin’s previous U.S. exit, changing what was a minimum two-year withdrawal into an indefinite prohibition.

This action follows KuCoin’s January 2025 guilty plea for operating an unlicensed money transmitting business, which involved nearly $297 million in penalties and forfeitures. Collectively, these cases illustrate how U.S. authorities have pursued the exchange on multiple fronts, combining criminal anti-money laundering charges with civil market access violations.

The relatively modest penalty in the CFTC case indicates that much of the financial repercussions were already addressed in the criminal case. The agency noted it did not seek disgorgement, referencing Peken’s cooperation and the forfeiture order established in the parallel DOJ case.

According to the DOJ, KuCoin had about 1.5 million U.S. users and earned at least $184.5 million in fees from them. The exchange only implemented know-your-customer protocols in August 2023 and did not enforce them on existing accounts, a shortcoming that became critical to enforcement actions.

The court also dismissed residual claims against associated entities Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited.

With the injunction now effective, KuCoin’s U.S. business has transitioned from a temporary limitation to a permanent closure, completing a unique enforcement process that progressed from criminal prosecution to civil market bans.