Seychelles-based crypto exchange OKX’s operator, Aux Cayes FinTech Co. has agreed to pay nearly $505 million in fines and penalties after pleading guilty to violating U.S. anti-money laundering (AML) laws for seven years.
On Monday, the company admitted to operating an unlicensed money-transmitting business, with U.S. District Judge Katherine Polk Failla overseeing the case in Manhattan.
Acting U.S. Attorney Matthew Podolsky stated that OKX knowingly ignored AML regulations, allowing criminals to exploit the platform. Over the years, suspicious transactions linked to criminal activity exceeded $5 billion.
OKX will pay an $84 million criminal fine as part of the settlement, while its parent company has agreed to forfeit $421 million.
Although OKX officially restricted U.S. users from transacting on its platform, it actively targeted American customers, including those in New York, since 2017. FBI Special Agent James E. Dennehy revealed that OKX even advised individuals on how to provide false information to bypass security measures.
Between 2018 and early 2024, the exchange facilitated over $1 trillion in transactions for U.S. customers without proper registration, generating hundreds of millions in fees. Court documents further revealed that OKX employees guided users to enter fake national IDs and random countries to bypass KYC verification.
Despite its legal battles in the U.S., OKX recently secured a MiCA license, allowing it to operate across 28 European Economic Area (EEA) member states with fully compliant crypto services.
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