OKCoin’s parent company OKX faced a landmark $504 million penalty in 2025 for egregious AML violations in the U.S., including enabling $5 billion in suspicious crypto trades. Despite claiming to bar U.S. customers, OKX allowed users to falsify identities and bypass KYC measures. This case highlights critical compliance failures in transaction monitoring and customer due diligence, risking illicit finance flows. Concurrently, Malta’s FIAU fined OKCoin Europe €1.1 million for systemic AML lapses, underscoring widespread regulatory challenges for crypto platforms globally. The enforcement actions emphasize that robust AML controls are now vital for legitimacy and survival in crypto markets.
OKCoin, the U.S. affiliate of OKX, became embroiled in a major U.S. federal investigation due to its parent company’s failure to maintain adequate anti-money laundering safeguards and operating as an unlicensed money transmitter. Despite official policies banning U.S. customers, OKX allowed access to U.S. investors, facilitating over $5 billion in suspicious and criminally tainted crypto transactions. This failure to prevent money laundering led to a $500 million-plus penalty settlement and guilty plea in early 2025, marking one of the most significant crypto AML enforcement cases by U.S. authorities. Concurrently, their European arm faced regulatory penalties for systemic AML control weaknesses, underscoring ongoing compliance challenges across the group’s global operations. The case highlights the escalating regulatory crackdown on crypto exchanges enabling illicit finance in the U.S. and abroad.
