Seychelles-based crypto exchange OKX has admitted to violating U.S. anti-money laundering laws, agreeing to a $505 million settlement after facilitating billions in suspicious transactions.
OKX Settles U.S. Criminal Case for $505 Million
OKX, a major cryptocurrency exchange operated by Aux Cayes FinTech Co., has pleaded guilty to running an unlicensed money-transmitting business in the U.S. and violating anti-money laundering (AML) laws. The company has agreed to pay a $505 million settlement, including $84.4 million in fines and $420.3 million in forfeitures, according to the U.S. Department of Justice (DOJ) announcement on February 24, 2025.
The DOJ revealed that from 2017 to 2024, OKX allowed U.S. customers to trade over $5 billion in suspicious transactions, despite publicly claiming to block American users. Investigators found that OKX not only permitted these activities but also helped U.S. customers bypass restrictions through deceptive practices.
DOJ: OKX Assisted U.S. Users in Evading Controls
The DOJ’s press release details how OKX employees advised U.S. clients to provide false residency information to access the platform. In some cases, employees reportedly instructed users to enter fake details, such as claiming to reside in the United Arab Emirates with random identification numbers.
“For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States and even going so far as to advise individuals to provide false information,” said Acting U.S. Attorney Matthew Podolsky. “As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.”
As part of the plea agreement, OKX must now hire an external compliance consultant until 2027 to monitor its AML protocols and ensure adherence to financial regulations. The company stated that U.S. customers made up a minor portion of its users and that it no longer serves American clients.
Follows Binance’s Record $4.3 Billion Settlement
OKX’s case mirrors the November 2023 legal battle faced by Binance, the world’s largest cryptocurrency exchange. Binance pleaded guilty to similar AML violations, resulting in a $4.3 billion fine and the resignation of its CEO, Changpeng Zhao (CZ), who later served four months in prison.
The crackdown on OKX and Binance signals an increased effort by U.S. regulators to police crypto platforms that fail to comply with AML and financial transparency laws. The settlement reinforces the government’s stance on holding crypto exchanges accountable for illicit financial activities.
Regulatory Scrutiny Continues
The OKX settlement is the latest in a series of enforcement actions targeting major crypto firms. As U.S. regulators intensify oversight, industry players may face stricter compliance requirements in the coming years.
Stay updated on the latest cryptocurrency regulations and enforcement actions to understand their impact on the digital asset industry.
