OKX, the largest international cryptocurrency exchange platform, hosts transactions totaling billions of dollars each day where users can place orders for spot trades in over three hundred cryptocurrencies like Bitcoin and Ethereum, in addition to ordering derivative products tied to cryptocurrencies’ value.

On February 24, the government announced that the Seychelles-based company, Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX,” that operated OKX since 2017, pleaded guilty to running an unlicensed money transmitting business. The company will pay penalties totaling over $504 million.

Financial businesses that operate in any capacity in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB) and comply with federal anti-money laundering (AML) laws, including the Bank Secrecy Act. The laws require the filing of suspicious activity reports and maintaining an adequate AML program, consisting of a know-your-customer (KYC) program among other requirements. AML programs are important to safeguard sensitive roads into America’s financial system, ensuring such points do not get breached or become open gates for opportunistic criminals.

Since 2017, OKX had a policy preventing U.S. individuals from engaging in crypto transactions on its platform. Despite this, OKX intentionally attracted and pursued customers in America. From around 2018 to 2024, U.S. customers engaged in over one trillion dollars’ worth of transactions on OKX, generating hundreds of millions of dollars in trading fees and profits for the company.

According to court documents, OKX knew the U.S. law requirement to register as a money services business with FinCEN but chose not to comply. OKX also failed to adequately use software to monitor and detect suspicious activity, including money laundering. In addition, OKX did not have adequate controls to determine if the parties engaging in various transactions on its platform were subject to sanctions imposed by the U.S. Treasury Department.

Up to early 2024, OKX was used by numerous customers to launder the proceeds of suspicious and criminal activities, including over five billion dollars of suspicious transactions and illicit proceeds (based on a review of third-party transaction data).

In 2024, OKX retained an external compliance consultant to advise on policies and controls created to prevent U.S.  customers from engaging in transactions the platform. As part of the plea agreement, OKX will continue to work with the consultant through February 2027.

“The government is taking strong actions against companies brazenly violating the Bank Secrecy Act,” commented Constantine Cannon whistleblower partner Marlene Koury. She explained that “although this case did not mention whistleblowers, the government counts on people like you to report violations of BSA/AML laws and regulations. Whistleblowers can be eligible for rewards associated with reporting such violations.”

If you believe you have information on BSA/AML violations or want to learn more about what it means to be a whistleblower, please contact us. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consult.

Read Not OK! Cryptocurrency Exchange Platform OKX Violated U.S. Anti-Money Laundering Laws and Will Pay $504M+ in Penalties at constantinecannon.com