Seychelles-based cryptocurrency exchange OKX has pleaded guilty to violating U.S. anti-money laundering (AML) laws and will pay a $504 million fine, according to a statement from the U.S. Attorney’s Office. The settlement comes after authorities accused the exchange of illegally facilitating over $5 billion in trades for U.S. users between 2017 and 2024.
OKX Accused of Aiding U.S. Users in Bypassing Restrictions
Federal prosecutors allege that despite publicly claiming to restrict U.S. users, OKX actively encouraged American traders to use its platform and even provided guidance on bypassing identity verification checks.
According to the lawsuit, OKX employees instructed users to provide fake information during the account registration process. In one instance, an employee allegedly advised a U.S. trader to list a false country of residence and enter random ID numbers to complete verification.
Acting U.S. Attorney Matthew Podolsky said in a statement that OKX “flagrantly violated U.S. law” and enabled billions in suspicious transactions.
$504 Million Settlement Follows Binance Case
The $504 million penalty marks one of the largest fines imposed on a crypto exchange for AML violations.
The case follows a similar crackdown on Binance, which paid a record $4.3 billion fine last year for failing to comply with U.S. financial laws. Binance’s founder, Changpeng “CZ” Zhao, also served a four-month jail sentence as part of the settlement.
Regulatory Scrutiny Increases on Crypto Exchanges
The OKX case underscores growing regulatory pressure on crypto firms operating in the U.S. without proper authorization.
Authorities have warned that offshore exchanges must comply with AML regulations or face legal action. The settlement is expected to have long-term consequences for OKX’s global operations, with increased oversight likely from financial watchdogs.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Cryptocurrency investments and trading involve risk. Always conduct due diligence before investing.
