OKX Settles $505 Million Fine with Cuomo’s Help
OKX– Cryptocurrency exchange OKX has reportedly hired former New York Governor Andrew Cuomo to assist with legal matters related to a federal investigation that led to the company pleading guilty to several violations. The firm agreed to pay $505 million in fines and penalties for breaching U.S. Anti-Money Laundering (AML) laws.
Cuomo, a licensed attorney in New York, began advising OKX on legal matters after his resignation as governor in August 2021. Bloomberg, citing sources familiar with the situation, revealed that Cuomo regularly communicated with OKX executives, offering counsel on how to handle the criminal investigation. His expertise helped the company respond to the federal probe and manage the fallout.
In February 2024, OKX pleaded guilty to operating an unlicensed money-transmitting business, a violation of U.S. AML regulations. As part of the agreement, the Seychelles-based firm will pay $84 million in penalties and forfeit $421 million in fees earned from institutional clients between 2018 and 2024. Despite having a policy in place since 2017 that prohibited U.S. persons from transacting on its platform, the violations occurred over a six-year period.
Cuomo’s Influence on Executive Appointments
Beyond offering legal advice, Cuomo also influenced OKX’s decision-making in key executive appointments. According to Bloomberg, Cuomo encouraged the exchange to appoint his friend, Linda Lacewell, a former superintendent of the New York Department of Financial Services, to board of directors. Lacewell was appointed in 2024 and recently took on the role of Chief Legal Officer on April 1.
After resolving the investigation, OKX has announced plans to hire a compliance consultant to address the issues raised by the probe. The exchange aims to enhance its regulatory compliance efforts and achieve “the gold standard of global compliance,” as stated by CEO Star Xu.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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