🤝In response to DOJ anti-money laundering violation charges, OKX affiliate agrees to pay $500 million settlement
The U.S. Department of Justice (DOJ) recently filed serious charges against OKX affiliate Aux Cayes FinTech Co. Ltd, alleging that it violated anti-money laundering regulations and deliberately circumvented U.S. law. Ultimately, Aux Cayes pleaded guilty and agreed to pay a settlement of more than $500 million, including an $84 million fine and the forfeiture of $421 million in fees earned from U.S. customers.
The investigation found that OKX had circumvented U.S. trading restrictions by instructing customers to falsify information and even ignored "know your customer" (KYC) regulations. For example, in April 2023, an OKX employee instructed a U.S. customer to enter a false nationality and ID number. In January 2024, the same employee also asked potential customers if they had found other ways to bypass KYC verification.
Although OKX officially bans U.S. users, it still advertises in the United States, sponsors events such as the Tribeca Film Festival, and attracts customers through affiliate marketers. There are even customers who publicly share guides for using VPNs to access the platform.
U.S. Attorney Matthew Podolsky pointed out that OKX failed to implement necessary anti-money laundering measures for more than seven years, resulting in the platform facilitating more than $5 billion in suspicious transactions and illegal gains. These actions exposed the fragility of the financial system and also aroused strong dissatisfaction from regulators.
Aux Cayes acknowledged the regulatory shortcomings, but emphasized that the affected users accounted for only a small part of its customer base. As part of the settlement agreement, OKX voluntarily hired a compliance consultant to strengthen supervision and said it would continue to improve its compliance framework.
💬 What do you think? OKX was fined $500 million this time. Do you think this is a warning to cryptocurrency exchanges or excessive regulation? Leave your opinions and views in the comment area!
