KuCoin permanently banned from U.S. after illegal crypto operations

A federal court has permanently banned KuCoin's operator, Peken Global Limited, from serving U.S. customers without proper registration. The ruling follows a long-running legal battle with the Commodity Futures Trading Commission (CFTC), which accused the exchange of operating illegally in the country. KuCoin, once a major player in the American crypto market, must now exit the U.S. for good. The CFTC first sued Peken Global and three affiliated entities in March 2024. Regulators alleged the exchange ran an unregistered offshore platform while allowing U.S. residents to trade without compliance. KuCoin had introduced know-your-customer (KYC) checks in August 2023 but failed to apply them to existing accounts.

In January 2025, KuCoin pleaded guilty to operating an unlicensed money-transmitting business. The case resulted in nearly $297 million in fines and forfeitures. Despite its legal troubles, the exchange remains one of the world's largest spot crypto platforms, with a daily trading volume of around $1.7 billion.

The recent court order requires Peken Global to pay a $500,000 civil penalty. However, the CFTC did not pursue disgorgement, citing the company's cooperation and the substantial penalties already imposed in the Department of Justice case. The ruling also dismissed claims against three other KuCoin-linked firms—Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited—while confirming that three additional entities named in the original 2023 lawsuit have since ceased operations.

The ban formalises KuCoin's earlier withdrawal from the U.S. market, turning a temporary exit into a permanent shutdown. The exchange had previously served around 1.5 million American users, generating at least $184.5 million in fees from them. KuCoin is now barred from re-entering the U.S. market unless it registers as a foreign board of trade. The $500,000 penalty and permanent ban mark the end of its American operations. Meanwhile, the exchange continues to operate globally, though under stricter regulatory scrutiny.