Published March 29, 20242 min read

Cryptocurrency Security Worth Its Weight in Gold: Lessons from the KuCoin Scandal

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CoinMooner Team
artwork image for: $9 Billion Laundering: KuCoin Under the Scope of US Authorities

In today's globalized world, security concerns for investors and users of cryptocurrency platforms are becoming increasingly relevant. Anonymity and lack of verification procedures can pose severe customer risks, as they may facilitate financial fraud and other illegal activities.

Coinmooner has published a news article aiming to draw attention to one of the world's largest centralized exchanges, ranking seventh in popularity according to CoinMarketCap. The article discusses a recent scandal involving allegations of $9 billion asset laundering against the company KuCoin by US authorities.

Just yesterday, the US Department of Justice accused the cryptocurrency exchange KuCoin and its Chinese founders, Chun Gan, and Ke Tang, of violating laws regarding money transmission without the appropriate license. They are charged with disregarding laws to combat money laundering and failing to analyze suspicious transactions. Since its founding in 2017, KuCoin allegedly received over $5 billion and transferred over $4 billion of illegally obtained funds. The exchange attracted American users by promising anonymity and no mandatory KYC verification, posing a security threat to customers and facilitating illegal operations.


Such accusations not only have a strong basis but can also significantly influence regulation and legislation in the Web3 and cryptocurrency technology sphere. This legal process could prompt future measures to monitor cryptocurrency exchanges and other Web3 participants and create more favorable conditions for them.

In late 2023, Coinmooner extensively discussed the issue faced by the KuCoin cryptocurrency exchange in our article "US Authorities Impose New Sanctions on Top Global Crypto Exchange." They were forced to pay $22 million and restrict access for New York residents due to violations of service laws.

Moreover, numerous cryptocurrency exchanges and their founders have recently been under the spotlight of legal proceedings, with some still ongoing. For instance, Binance, its former CEO Changpeng Zhao, and Coinbase. These exchanges currently hold leading positions among centralized cryptocurrency exchanges worldwide. These events draw particular attention to regulatory issues and legal responsibilities in the cryptocurrency sphere.

From our end, the Coinmooner team commits to closely monitoring the situation regarding the asset laundering allegations associated with the KuCoin exchange and promptly providing detailed information to our readers. Also, CoinMooner encourages readers to always conduct their analysis of any news, which helps identify attempts at information manipulation or distorted representations, thereby helping protect against potential errors and financial losses. In the context of rapid technological advancements in the Web3 sphere, it's also crucial to continuously update and develop protection methods. Utilizing cutting-edge technologies in defense helps counter more sophisticated attacks and reduces the likelihood of successful breaches.

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