Quick take:
The OKX affiliate acknowledged that it had not obtained a license to operate as a money transmitter.
The company also acknowledged that certain U.S. customers had in the past traded on the company’s global platform.
Aux Cayes Fintech said a huge percentage of the $421 million in forfeited fees came from a few institutional clients.
Aux Cayes Fintech, an affiliate of crypto exchange company OKX, has resolved a Department of Justice (DOJ) investigation acknowledging that it operated as a money transmitter without a license and that certain U.S. customers had in the past traded on the company’s global platform.
As part of the resolution, Aux Cayes agreed to pay a penalty of $84 million and forfeit fees earned from these US customers over the period, totalling approximately $421 million. According to the crypto exchange company, a huge percentage of the $421 million in forfeited fees came from a few institutional clients.
“In recognition of these gaps, the Company, on its own initiative, voluntarily retained a compliance consultant to help remedy the issues and enhance its overall compliance program and plans to continue with this consultant into the future,” OKX wrote in a blog post.
The crypto exchange company said it will now focus on implementing its global expansion plan, adding that the settlement “reflects growth and positions OKX to continue working with regulators and developing solutions that benefit our customers and the crypto market at large.”
This settlement agreement also comes at a time when the SEC has been closing several ongoing investigations against crypto companies, including Robinhood, which saw the U.S. securities regulator close the case against its crypto arm.
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