Justice Department Resolution: AUX Cayes Fintech, an affiliate of cryptocurrency exchange OKX, settles for $505 million to wrap up an investigation.
In a significant development, crypto exchange company OKX has resolved a Department of Justice (DOJ) investigation, marking a milestone in the company's regulatory journey.
Aux Cayes Fintech, an affiliate of OKX, has agreed to pay a penalty of $84 million and forfeit fees earned from U.S. customers, totaling approximately $421 million. The settlement comes after it was revealed that Aux Cayes Fintech operated as a money transmitter without a license, and certain U.S. customers had traded on the company's global platform.
The U.S. securities regulator has also closed the case against Robinhood's crypto arm, as part of a broader trend of regulatory bodies closing several ongoing investigations against crypto companies.
In response to the regulatory challenges, OKX hired a compliance consultant to help remedy issues and enhance its overall compliance program. The company plans to continue working with the consultant into the future, demonstrating a commitment to maintaining robust compliance measures.
Despite the settlement, OKX remains under investigation by European Union regulators over allegations that the platform enabled laundering of approximately $100 million stolen in the February 2025 Bybit hack. The investigation could potentially lead to the revocation of OKX's recently acquired EU operating license.
The settlement reflects growth for OKX and positions the company to continue working with regulators, focusing on its global expansion. The exchange pledged improvements to reduce errors in its compliance systems, such as the issue of false positives, while maintaining strict measures to meet compliance laws and prevent illicit activity on its platform.
Sources:
- CoinDesk
- Bloomberg
- Reuters
In light of the settlement, Aux Cayes Fintech, an affiliate of OKX, will shift its focus from finance and business to technology, aiming to improve its compliance systems and reduce errors such as false positives, ensuring robust adherence to regulatory laws and avoiding illicit activity. The exchange's impressive compliance efforts were highlighted in news articles published by CoinDesk, Bloomberg, and Reuters.
As regulators in the European Union continue their investigation into OKX's alleged role in the laundering of stolen funds from the Bybit hack, the company remains committed to working with them and maintaining its global expansion, with a renewed focus on regulatory compliance in finance and business.
