KuCoin Operator Fined $500,000, Ordered to Block US Users

TLDR

• The US District Court for the Southern District of New York ordered Peken Global Limited to pay a $500,000 civil penalty.

• The court required KuCoin’s operator to block US residents from accessing the exchange unless it registers with the CFTC.

• The Commodity Futures Trading Commission confirmed that the consent order resolves all civil claims against Peken Global.

• The CFTC dismissed its claims against Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. with prejudice.

• The court did not impose disgorgement after citing Peken Global’s cooperation in the investigation.

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A federal court has ordered KuCoin’s operator to pay a $500,000 civil penalty and restrict US access. The ruling resolves a case brought by the Commodity Futures Trading Commission against Peken Global Limited. The order requires the company to block US traders unless it registers with the regulator.

KuCoin Settlement With CFTC Imposes Ban and Fine

The US District Court for the Southern District of New York entered a consent order against Peken Global Limited. The court imposed a $500,000 civil monetary penalty on the Turks and Caicos-incorporated company. The Commodity Futures Trading Commission announced the resolution on Monday and confirmed it had settled all claims.

The order permanently bars Peken Global from allowing US residents to trade on KuCoin without registration. The company must register as a foreign board of trade before offering access. The regulator stated that the order “permanently enjoins Peken Global from future violations as charged.”

The CFTC filed its lawsuit in March 2024 against Peken Global and three related entities. The agency charged Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. alongside Peken Global. It is alleged that they operated an unlicensed digital asset derivatives exchange and failed to register as a futures commission merchant.

The complaint also accused the firms of failing to implement an effective customer identification program. The CFTC alleged KuCoin used “sham” know-your-customer procedures. It also claimed the platform did not prevent US customers from accessing its services.

Under the agreement, the court did not impose disgorgement. The CFTC said it considered Peken Global’s cooperation during the investigation. The agency also referenced related proceedings in the parallel criminal case.

The court dismissed with prejudice all CFTC claims against Mek Global, PhoenixFin, and Flashdot. It also dismissed counts II through V of the complaint against Peken Global. As a result, the consent order concludes the civil enforcement action.

KuCoin Previously Paid $300 Million in DOJ Case

In January 2025, Peken Global pleaded guilty to operating an unlicensed money transmitting business. The plea formed part of a parallel case brought by the Department of Justice. The agreement required the company to pay $112.9 million in criminal fines and $184.5 million in forfeiture.

The DOJ charged KuCoin and its founders, Chun Gan and Ke Tang, in that case. Prosecutors alleged they conspired to violate the Bank Secrecy Act. They also alleged that the exchange received over $5 billion and sent over $4 billion in suspicious proceeds.

The criminal resolution required KuCoin to exit the US market for at least two years. The CFTC stated that the $500,000 penalty reflected the earlier $300 million resolution. It confirmed that the civil penalty factors in the prior guilty plea and financial sanctions.

The CFTC initially sought civil monetary penalties, disgorgement, and permanent trading bans. However, the final consent order did not include disgorgement. The agency cited Peken Global’s cooperation in the investigation and related proceedings.

The consent order marks another US regulatory resolution involving KuCoin within fourteen months. The court entered the latest order on Monday in New York. The ruling now restricts US participation on the platform unless proper registration occurs.

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