KuCoin Permanently Banned from U.S. Market After Federal Court Approves CFTC Order

A federal court in the Southern District of New York has approved a Commodity Futures Trading Commission (CFTC) consent order against Peken Global Limited, the operator of cryptocurrency exchange KuCoin, effectively making its U.S. ban permanent. The ruling marks the end of a multi-agency enforcement effort targeting one of the world's largest crypto trading platforms.

Under the court-approved order, Peken Global must pay a $500,000 civil penalty and is barred from providing trading access to U.S. participants without first registering as a foreign board of trade. Critically, the order eliminates the time restriction that had previously governed KuCoin's U.S. withdrawal, turning a temporary two-year minimum exit into an indefinite prohibition.

This CFTC action builds on KuCoin's January 2025 guilty plea to running an unlicensed money transmitting business, which resulted in nearly $297 million in combined penalties and forfeitures under the Department of Justice. Together, the two cases illustrate how U.S. regulators pursued KuCoin simultaneously on criminal anti-money laundering grounds and civil market access violations.

The comparatively modest civil penalty reflects that the bulk of financial consequences had already been addressed through the criminal case. The CFTC opted not to pursue disgorgement, acknowledging Peken's cooperation and the existing DOJ forfeiture order.

According to federal prosecutors, KuCoin had approximately 1.5 million registered U.S. users and collected at least $184.5 million in fees from American customers. The exchange did not implement know-your-customer verification measures until August 2023 and failed to apply them retroactively, a compliance failure that regulators cited as central to both enforcement actions.

The court also dismissed all remaining claims against affiliated entities Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited.

With the injunction now finalized, KuCoin's American operations have transitioned from a temporary suspension to a complete and permanent shutdown.