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CFTC Order Permanently Bars KuCoin Operator From U.S. Users, Imposes $500,000 Penalty

The ruling caps a two-year U.S. crackdown that links a DOJ guilty plea to a civil bar on serving American traders.

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Kucoin bows to u.s. regulators, but america’s war on unregistered exchanges isn’t over

Overview

  • Peken Global, which obtained a federal consent order Monday, is permanently barred from letting U.S. users access KuCoin unless it secures CFTC foreign board of trade registration.
  • A foreign board of trade registration lets an offshore exchange offer its matching engine to U.S. participants under U.S. rules, so KuCoin must stay closed to Americans unless it clears that hurdle.
  • The court set a $500,000 civil penalty and no disgorgement, citing the firm’s cooperation and nearly $297 million in fines and forfeitures from its January 2025 DOJ guilty plea.
  • The court also dismissed with prejudice the CFTC’s remaining claims against Mek Global, PhoenixFin, and Flashdot, closing the civil case.
  • Regulators said KuCoin let about 1.5 million Americans trade and used weak KYC that began in August 2023 without vetting old accounts, a pattern other authorities such as Dubai’s market watchdog have also moved to curb.