Breaking: OKX Pays $84 Million to Settle US DOJ Probe

Aux Cayes FinTech Co. Ltd, a subsidiary of OKX Exchange, has resolved a probe by the United States Department of Justice (DOJ). The firm reportedly paid $84 million in fees and agreed to forfeit more assets.

OKX No Longer Under US DOJ Probe

Notably, as the DOJ revealed in its announcement, the investigation into the firm hinges on its operations as an unlicensed money transmitter in the U.S. In addition to the $84 million fine, Aux Cayes agreed to forfeit a $421 million fee. 

Noteworthy is the $421 million in fees earned by U.S. customers. During its investigation, the authorities accused the firm of failing to secure the proper license before operating as a money transmitter in the region.

“OKX sought out customers in the United States, including in the Southern District of New York,” the DoJ wrote in a press release.

In response, the exchange clarified that the U.S. customers involved are no longer on the platform. It also noted that there were no customer harm-related allegations. 

Another step Aux Cayes took to ensure compliance was to retain a compliance consultant. This expert’s key responsibilities included remedying issues and enhancing the company’s compliance program.

The OKX Subsidiary Subpoena By CFTC

The exchange intends to use this consultant’s services going forward, hoping this decision will help it remain compliant.

Before this settlement, OKCoin, the trading platform’s United States division, received a subpoena from the Commodity Futures Trading Commission (CFTC) on February 24, 2024. According to reports, the Subpoena detailed the activities of persons linked to the exchange who engaged in fraud.

Some entities familiar with the matter noted that the CFTC probe was linked to the sudden crash of the exchange’s native OKB token on January 23, 2024. At the time, OKX promised to compensate users who suffered losses due to the crash. 

US SEC Clearing High-Profile Crypto Lawsuits

Meanwhile, the Aux Cayes settlement is one of the core crypto cases that has ended under the Donald Trump administration. 

As CoinGape reported earlier, the Securities and Exchange Commission (SEC) closed its case with Robinhood following a Wells Notice issued last year. The regulator took no action against the leading brokerage firm. 

This Robinhood case closed only a few days after the Commission agreed to drop the Coinbase lawsuit. In the long run, more crypto firms may be exonerated from the SEC’s former regulation-by-enforcement approach. Market experts consider blockchain payments firm Ripple Labs Inc as the next in line to see its lawsuit closure.