Aux Cayes Fintech Co. Ltd., known as OKX, has pled guilty to operating an unlicensed money transmitting business in violation of U.S. anti-money laundering laws. The Seychelles-based cryptocurrency exchange has agreed to pay penalties exceeding $504 million as part of the plea agreement. This case was overseen by U.S. District Judge Katherine Polk Failla.
Matthew Podolsky, Acting United States Attorney for the Southern District of New York, stated, "For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system." He added that OKX facilitated over five billion dollars in suspicious transactions and criminal proceeds.
James E. Dennehy, FBI Assistant Director in Charge of the New York Field Office, commented on OKX's actions: "For years, OKX flagrantly violated U.S. law... Blatant disregard for the rule of law will not be tolerated."
Court documents reveal that since 2017, despite having a policy against serving U.S. customers, OKX actively sought out such customers and engaged them in transactions worth over one trillion dollars through early 2024. These transactions generated significant trading fees and profits for OKX.
OKX was aware it needed to register with the Financial Crimes Enforcement Network (FinCEN) but failed to do so. It allowed users to create accounts without completing a Know Your Customer (KYC) process until late 2022 and even provided guidance on circumventing these processes.
The company did not adequately monitor suspicious activities or check for sanctions compliance until May 2023, allowing illicit transactions worth billions of dollars to occur on its platform.
In early 2024, OKX hired an external compliance consultant to improve its controls against unauthorized transactions by U.S. persons. As part of the plea deal, they will continue retaining this consultant through February 2027.
Besides pleading guilty, OKX agreed to criminally forfeit $420.3 million and pay a fine of approximately $84.4 million after receiving credit for cooperation with authorities.
Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are handling the prosecution under the Illicit Finance & Money Laundering Unit at the Southern District's Office.