$500 Million Settlement with DOJ
The U.S. Department of Justice (DOJ) has reached a significant $500 million settlement with Aux Cayes FinTech, an affiliate of crypto exchange OKX, over allegations of operating an unlicensed money transmitting business in the U.S. The settlement includes an $84 million penalty and a $421 million forfeiture of funds collected from U.S.-based users.
Legal Details of the Settlement
The case stemmed from Aux Cayes’ failure to obtain the proper licenses required for cryptocurrency transactions in the U.S. The DOJ's investigation found that the company’s operations in the U.S. were unregistered, despite processing significant volumes of transactions.
Implications for OKX
While OKX distanced itself from the specific actions of Aux Cayes, the settlement has raised questions about the platform’s global operations. OKX assured its customers that no funds were affected by the breach and emphasized its commitment to improving compliance.
