The exchange also agreed to pay almost $300 million in penalties and undergo leadership changes. Forcount promoter Antonia Perez Hernandez was sentenced to 30 months in prison for her role in a $8.4 million Ponzi scheme. Meanwhile, Ripple Labs secured money transmitter licenses in Texas and New York to expand its US operations, despite its ongoing legal battles with the SEC. In Europe, OKX and Crypto.com received MiCA licenses, which allows them to offer regulated crypto services across the EEA under unified regulations. KuCoin Exits US Market and Settles Charges KuCoin, a major crypto exchange that is operated by Peken Global Limited, pleaded guilty to operating an unlicensed money-transmitting business in the United States. The company reached a settlement agreement with the Department of Justice (DOJ), and agreed to pay close to $300 million in penalties, including $184.5 million in forfeitures and a $112.9 million fine. The settlement also mandates KuCoin to withdraw from the US market for two years and requires the resignation of its founders, Michael Gan and Eric Tang, who will forfeit $2.7 million and have no further involvement in the company’s management or operations. The DOJ’s case against KuCoin and its founders alleged that the exchange did not implement adequate Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. Prosecutors revealed that until mid-2023, KuCoin did not require customers to provide identifying information, and employees publicly stated that KYC was not mandatory, including in communications with US-based users. Additionally, the exchange was accused of failing to register with the Financial Crimes Enforcement Network (FinCEN), which is a legal requirement for money-transmitting businesses. After the settlement, KuCoin issued a statement assuring its users that operations in other markets will remain unaffected. The exchange also mentioned the progress it made in improving its compliance and security frameworks. Michael Gan , in a separate statement, called the resolution a positive outcome, and shared that all charges against him and Tang were dismissed after meeting specific conditions. KuCoin’s chief legal officer, BC Wong, will assume the role of CEO as part of the company’s leadership transition. This settlement was reached as other crypto companies are still in the throes of regulatory scrutiny. BitMEX , another major crypto exchange, was fined $100 million and placed on unsupervised probation for two years for similar AML compliance failures. By October, US regulators reportedly collected more than $19 billion in settlements from crypto companies. Forcount Promoter Sentenced to Prison Antonia Perez Hernandez, a promoter of the cryptocurrency Ponzi scheme Forcount, also recently faced the wrath of the US Justice System, and was sentenced to 30 months in prison for conspiracy to commit wire fraud. The sentencing took place on Jan. 27 at the US District Court for the Southern District of New York (SDNY), with Judge Analisa Torres presiding. Hernandez pleaded guilty to her role in the scheme, which defrauded investors of almost $8.4 million between 2017 and 2021. The Forcount operation falsely promised large returns through cryptocurrency trading and mining, but instead used funds from new victims to pay earlier investors. Judge Torres pointed out that Hernandez sold valueless coins and evidence suggested she may have continued similar activities. During the hearing, Hernandez apologized to those who lost money because of her actions. Other key figures in the scheme already faced sentencing, including senior promoter Juan Tacuri. He received a 20-year prison term in October of 2024, while Nestor Nuñez was sentenced to four years in November after pleading guilty. The US Justice Department shared some details about how Forcount’s founders and promoters misled victims by claiming that profits from crypto operations will double their investments within six months. Instead, the funds were diverted for fraudulent payouts, with no real mining or trading activities taking place. This sentencing was one of the first legal actions in a crypto-related criminal case at the SDNY since the resignation of US Attorney Damian Williams in December of 2024. After the 2024 US presidential election, a prosecutor from the SDNY suggested that fewer resources would be allocated to crypto-related cases under the new administration. Ripple Secures Licenses in Texas and New York Some companies are now taking a more proactive approach to avoid any legal consequences. Ripple Labs announced that it secured money transmitter licenses in Texas and New York, which allows the company to expand its cross-border payment solutions in the United States. The licensing approvals were revealed in a Jan. 27 notice, and placed a lot of emphasis on the firm’s compliance with regulatory standards in two key states that are known for their defined regulations and robust oversight of financial operations. Ripple now holds more than 50 licenses across various jurisdictions. (Source: Ripple ) Texas and New York are particularly influential in the crypto space, with Texas hosting a large number of mining companies and New York serving as a hub for digital asset businesses. Ripple’s recent licensing milestone happened on the heels of the New York Department of Financial Services approving the company’s RLUSD stablecoin in December, which Ripple plans to list on cryptocurrency exchanges. Despite these advancements, Ripple still faces legal challenges stemming from the ongoing Securities and Exchange Commission (SEC) lawsuit regarding XRP. The case was originally filed in 2020, and resulted in a $125 million liability for Ripple in August of 2024. Both Ripple and the SEC appealed the decision, and the matter is now under review by judges in the Second Circuit Court of Appeals. Ripple’s leadership has also drawn a lot of attention for its political ties. CEO Brad Garlinghouse and chief legal officer Stuart Alderoty reportedly kept a close relationship with US President Donald Trump, and also donated $5 million XRP to Trump’s inaugural fund. Both executives also attended inauguration events and private meetings with Trump at Mar-a-Lago in January. OKX and Crypto.com Secure MiCA Licenses in Europe OKX and Crypto.com also received full licenses under the European Union’s Markets in Crypto-Assets Regulation (MiCA). It was announced on Jan. 27 that the Malta Financial Services Authority granted the licenses, which allows the platforms to offer regulated crypto services across Europe. A key feature of MiCA is “passporting,” which permits licensed businesses to provide services throughout the European Economic Area (EEA) under a unified framework. (Source: OKX ) OKX plans to take advantage of this opportunity by providing EEA users with access to its over-the-counter (OTC), spot, and bot trading services, along with tailored local language support on its platforms. Crypto.com, meanwhile, plans to roll out a broader array of crypto services across the region. OKX Europe CEO Erald Ghoos strongly believes in the immense potential of Europe as a hub for digital assets, and that MiCA’s harmonized regulations make it easier to reach over 400 million potential customers in 30 EEA markets. Crypto.com’s president, Eric Anziani, praised the EU’s regulatory foresight as the license will help streamline compliance and cross-border operations. Fintech firm Bitpanda also recently announced it secured a MiCA license in Germany. CEO Eric Demuth stressed that the regulation’s success hinges on consistent enforcement by EU regulators.
