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A New York court has imposed a $500,000 fine on the cryptocurrency exchange KuCoin., 2026/03/31 11:40:36
The Southern District Court of New York has imposed an administrative penalty of $500,000 on KuCoin’s operator, Peken Global Limited, which is registered in the Turks and Caicos Islands, for failing to register with the U.S. Commodity Futures Trading Commission (CFTC).
The court’s ruling prohibits KuCoin from allowing U.S. clients access to its platform without being registered as a foreign trading venue. At the same time, the court dismissed the remaining claims from the CFTC against affiliated companies Mek Global Limited, PhoenixFin, and Flashdot Limited.
The court order also modifies the restrictions on the exchange’s operations in the U.S.: the previously imposed two-year temporary ban has effectively become indefinite.
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In 2024, the CFTC stated that KuCoin was engaged in trading commodity futures, swaps, and leveraged transactions without the necessary registration. According to the U.S. Department of Justice, the exchange had approximately 1.5 million users in the country and generated at least $184.5 million in fees from them.
Authorities claim that KuCoin only implemented its customer identification procedure (KYC) in August 2023 and did not apply it to existing accounts.
The CFTC noted that the company’s cooperation during the investigation was a factor in deciding against recovering unlawfully obtained profits. The agency also reminded of a parallel case: in January 2025, KuCoin admitted to conducting unlicensed money transmission activities and agreed to pay $300 million to settle claims.
Previously, U.S. regulators stated that digital goods, including cryptocurrencies, whose value is determined by supply and demand, fall under the CFTC’s jurisdiction.
