KuCoin in the crosshairs of American authorities. In the background of accusations of a “conspiracy for billions of dollars”

The US Department of Justice brings serious charges against the KuCoin cryptocurrency exchange. It turns out that KuCoin was targeted by the American authorities due to a “multi-billion dollar criminal conspiracy”. According to the DoJ, this involves violating the Bank Secrecy Act, omitting the KYC procedure and unlicensed money transfers. The KCS cryptocurrency dropped by over 20% after this information!

KuCoin targeted by the US Department of Justice

The KuCoin cryptocurrency exchange is one of the 10 largest cryptocurrency exchanges in the world. The US government accuses the stock exchange and its creators of committing numerous crimes, and the entire activity is called a “billion dollar conspiracy”. This is mainly about breaking banking secrecy and unlicensed money transfer. According to information provided by the USD Department of Justice and the court, the exchange was to receive a total of over USD 5 billion and process the payment of USD 4 billion in funds derived from crimes. Interestingly, in the last 24 hours alone, the exchange's trading volume amounted to over USD 2.3 billion.

The KuCoin exchange was targeted by the Department of Justice, along with its founders. Chun Gana and Ke Tang were accused of operating without a license and disregarding anti-money laundering regulations. All this, according to Doj, was aimed at strengthening the status of the CuKoin exchange.

KCS stock dives more than 20%. Will the bear enter the digital assets market?

According to the official statement of the US Department of Justice, the Kucoin cryptocurrency exchange was targeted by American authorities due to the lack of customer identity verification (KYC) and failure to submit reports on suspicious activities. This vulnerability caused the KuCoin exchange to become a conduit for illicit financial flows, according to the DoJ. It is worth emphasizing that this concerns money from the darknet and all kinds of frauds and frauds, for a total amount of over USD 9 billion.

The cryptocurrency community was afraid that the scenario that caused the cryptocurrency winter, i.e. the collapse of the FTX exchange, was repeating itself. At the moment, there is no indication that the situation with KuCoin will cause a collapse in the price of bitcoin or ethereum. Although KuCoin being targeted by the DoJ is a big event, the only declines that can be seen are the KCS token, the native token of the KuCoin exchange, which dropped by over 20% in 24 hours.