U.S. court bars KuCoin operator from serving American users without CFTC approval
A federal judge in New York permanently barred Peken Global, KuCoin operator, from serving U.S. users unless it registers as a foreign board of trade, and imposed a $500,000 civil penalty.
A U.S. federal court in New York has permanently barred Peken Global Limited, the operator of cryptocurrency exchange KuCoin, from allowing U.S. users on its platform unless it registers as a foreign board of trade. The court also ordered a $500,000 civil penalty as part of a settlement with the Commodity Futures Trading Commission.
The consent order, issued March 30 by the U.S. District Court for the Southern District of New York, ends the CFTC’s civil case against Peken Global, which is incorporated in the Turks and Caicos. The order blocks access for U.S. participants unless the company obtains the CFTC’s foreign board of trade registration.
Under a separate Department of Justice agreement tied to a criminal case, KuCoin must withdraw from serving U.S. customers for at least two years. In January 2025, Peken Global pleaded guilty to operating an unlicensed money transmitting business and agreed to a $112.9 million criminal fine and $184.5 million in forfeiture.
The CFTC sued Peken Global and three related entities-Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. in March 2024, alleging operation of an unregistered digital asset derivatives exchange, failure to register as a futures commission merchant, and inadequate customer identification controls. As part of the settlement, the court dismissed with prejudice all CFTC claims against the three other entities.
Disgorgement was not sought in the civil action. The agency cited Peken Global’s cooperation in its investigation and in related proceedings, including the parallel criminal case U.S. v. Flashdot Limited.
Foreign board of trade registration is the CFTC’s process that allows offshore exchanges to offer U.S. access to certain derivatives trading under agency oversight. Without it, Peken Global is barred from letting U.S.-based users trade on the exchange, adding context to the broader KuCoin review.
The order comes as federal market regulators adjust oversight of digital assets. Earlier this month, the CFTC and the Securities and Exchange Commission entered a coordination agreement to align oversight of traditional and crypto markets. Last week, the CFTC created an innovation task force focused on crypto, artificial intelligence, and prediction markets.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
