KuCoin reaches $500K deal with CFTC, bringing regulatory case to close
Peken Global Limited, KuCoin's parent entity, will settle CFTC allegations for $500,000, a significantly smaller amount compared to the $300 million settlement with the DOJ over related violations.
Peken Global Limited, the parent entity behind cryptocurrency exchange KuCoin, has agreed to pay a civil monetary penalty totaling $500,000 to resolve charges brought by the US Commodity Futures Trading Commission that accused the firm of running an unregistered offshore commodities trading platform.
According to a statement released by the CFTC on Monday, the US District Court for the Southern District of New York issued a consent order against Peken Global Limited, KuCoin's parent organization, which brings resolution to all allegations put forth by the CFTC.
The settlement was reached with Peken Global Limited neither admitting nor denying the allegations brought forward by the CFTC. Additionally, the company was not required to disgorge any profits obtained during the timeframe under investigation — spanning from July 2019 through approximately June 2023 — with the CFTC pointing to the firm's cooperative approach throughout the investigative process.
According to the commodities regulator, the court's decision to impose a $500,000 penalty took into account that KuCoin had previously entered a guilty plea and committed to paying a $300 million settlement in January 2025, in connection with a related Department of Justice (DOJ) prosecution that charged the company with running an unlicensed money transmission operation.
KuCoin restricted from offering access to Americans
When the CFTC published its statement regarding the lawsuit against KuCoin in March 2024, the regulatory body outlined its pursuit of severe penalties, including permanent prohibitions on trading activities against Peken Global Limited, alongside Mek Global Limited, PhoenixFin PTE Ltd. and Flashdot Limited — the three additional entities that were part of KuCoin's operational structure.
The CFTC's allegations stated that KuCoin maintained fraudulent know-your-customer protocols and failed to implement adequate measures to block US-based customers from accessing the exchange, while simultaneously charging the company with its failure to register as either a futures commission merchant or a foreign board of trade.
According to the terms of the most recent settlement, Peken Global is barred from permitting US residents access to trading services on KuCoin without first obtaining registration with the CFTC as a foreign board of trade.
Cointelegraph reached out to KuCoin for comment.