OKX Settles With US Authorities Over Money Transmitter License, Pays $500M in Penalties

Aux Cayes FinTech Co. Ltd., an OKX affiliate, is the specific party that settled with the U.S. Department of Justice, paying over $500 million in penalties

Cryptocurrency exchange OKX has settled with U.S. authorities over failing to obtain a license to operate as a money transmitter, the exchange announced Monday.

Aux Cayes FinTech Co. Ltd., an OKX affiliate, will pay over $500 million in penalties and forfeited fees as part of the settlement with the U.S. Department of Justice, according to a press release.

The exchange did not specify which state the license would have been issued from in the press release, but the DOJ said "OKX sought out customers in the United States, including in the Southern District of New York."

A person familiar with the situation told CoinDesk the settlement resolves allegations of fraudulent and non-compliant activities at the exchange in past years.

CoinDesk also learned that OKcoin, the American division of OKX, received a subpoena from the Commodity Futures Trading Commission (CFTC) on Feb. 24 last year.

The cover page of the subpoena, which CoinDesk has viewed, alleges “Certain persons engaged in fraud and other unlawful conduct with respect to digital asset transactions.”

A second person said the CFTC probe into OKcoin relates to last year's flash crash of the exchange's native token following the sudden drop in the price of the OKB token on Jan. 23, 2024. OKX told users they would be compensated for losses resulting from the crash.

An internal document circulated to OKX staff in January 2024 highlighted “a new ethics and compliance helpline to provide a confidential and secure space for you to bring up concerns or issues about ethical conduct, policy violations or suspected illegal behavior.”

OKX representatives did not immediately respond to requests for comment. A CFTC spokesperson declined to comment.

UPDATE (Feb. 24, 2025, 21:35 UTC): Adds additional information.