A U.S. federal court has entered a permanent injunction against the operators of the KuCoin crypto exchange, prohibiting them from allowing U.S. investors to trade on the exchange unless it registers with the U.S. Commodity Futures Trading Commission (CFTC).
The order resolved the CFTC’s case against Peken Global Ltd., Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd., that was filed in 2024, alleging that the companies violated derivatives law by operating the Seychelles-based KuCoin platform in the U.S. without registering.
Under the order, which was entered on consent, Peken was permanently banned from future violations and ordered to pay a US$500,000 penalty, while the CFTC voluntarily dismissed its complaint against the other three firms.
The order said that the CFTC is not seeking disgorgement based on Peken Global’s cooperation in this case, and the outcome of a related criminal case that included a forfeiture order.
In January 2025, Peken pleaded guilty to one count of operating an unlicensed money transmitting business, and was ordered to pay almost US$300 million in monetary sanctions, including US$184.5 million in forfeiture, and a criminal fine of approximately US$112.9 million.
The KuCoin platform has previously run afoul of Canadian authorities too.
Last year, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a $19.6 million penalty on Peken after finding that it breached the anti-money laundering rules by failing to register, and failing to report suspicious transactions on its platform.
Back in 2022, the Ontario Securities Commission (OSC) also secured enforcement sanctions against two of the KuCoin companies, Mek Global and PhoenixFin, for securities law violations. Among other things, Ontario’s Capital Markets Tribunal ordered a $2-million penalty against the firms.