Peken Global Limited, the parent company of cryptocurrency exchange KuCoin, has agreed to pay a $500,000 civil penalty to resolve allegations brought by the US Commodity Futures Trading Commission. The US District Court for the Southern District of New York entered a consent order formalising the settlement. Peken Global accepted the terms without admitting or denying the regulator’s claims.
The CFTC alleged that KuCoin operated as an unregistered offshore commodities exchange, running what the agency described as inadequate know-your-customer procedures and failing to take sufficient steps to prevent US customers from accessing the platform. The company was also charged with failing to register as a futures commission merchant or foreign board of trade. The conduct in question covers the period from July 2019 to approximately June 2023.
Notably, Peken Global was not required to disgorge profits earned during that period. The CFTC cited the company’s willing cooperation with the investigation as a factor in that decision. The regulator also noted that the $500,000 penalty takes into account a separate legal matter involving the same firm.
In January 2025, KuCoin pleaded guilty and agreed to pay a $300 million fine as part of a parallel case brought by the Department of Justice, which charged the firm with operating an unlicensed money transmitter business. The CFTC acknowledged that earlier resolution when determining the civil penalty amount in the current settlement. The two cases together represent a significant regulatory reckoning for the exchange.
The CFTC had initially signalled its intent to pursue strong punishments when it released a statement on its lawsuit in March 2024. At that time, the agency said it was seeking permanent trading bans against Peken Global and three other entities involved in KuCoin’s operations: Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited. The final settlement represents a less severe outcome than those originally sought measures.
Under the terms of the consent order, Peken Global is now prohibited from permitting US residents to trade on KuCoin unless the company first registers with the CFTC as a foreign board of trade. This condition places a clear compliance requirement on the firm going forward. KuCoin did not immediately respond to a request for comment on the settlement.
Originally reported by CoinTelegraph.
