Key Takeaways
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Peken Global Limited received a court-mandated $500,000 civil monetary penalty from the US District Court for the Southern District of New York.
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KuCoin’s operating entity must prevent American residents from using the platform unless proper CFTC registration is completed.
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The Commodity Futures Trading Commission announced that the consent agreement settles all outstanding civil allegations against Peken Global.
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Claims against three affiliated companies—Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd.—were dismissed with prejudice by the CFTC.
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No disgorgement was required by the court, which acknowledged Peken Global’s cooperative stance throughout the proceedings.
A New York federal court has mandated that the company behind KuCoin must pay a half-million dollar civil fine and implement restrictions preventing American users from accessing its services. This decision settles allegations initiated by the [[LINK_START_0]]Commodity Futures Trading Commission[[LINK_END_0]] targeting Peken Global Limited. According to the court’s directive, the entity must prohibit US-based traders from its platform unless it secures proper regulatory approval.
CFTC Reaches Settlement Agreement With KuCoin Entity
The federal district court in Manhattan approved a consent order targeting Peken Global Limited this week. Judges imposed a civil financial penalty totaling $500,000 on the company, which maintains incorporation in the Turks and Caicos Islands. The Commodity Futures Trading Commission publicly disclosed the resolution Monday, stating that all allegations had been addressed.
The judicial order establishes a permanent prohibition preventing Peken Global from permitting American citizens to conduct transactions on KuCoin without appropriate regulatory clearance. Before resuming services to US customers, the company must obtain registration as a foreign board of trade. According to the regulator’s statement, the order “permanently enjoins Peken Global from future violations as charged.”
The CFTC filed legal action in March 2024 targeting Peken Global along with three associated corporate entities. The regulatory body charged Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. in conjunction with Peken Global. Accusations centered on operating an unregistered digital asset derivatives platform and failing to register as a futures commission merchant.
The legal filing further accused these organizations of neglecting to establish adequate customer verification protocols. The CFTC characterized KuCoin’s know-your-customer practices as “sham” procedures. Regulators additionally asserted that the exchange failed to block American customers from utilizing its trading infrastructure.
The settlement agreement did not require disgorgement of profits. The CFTC acknowledged Peken Global’s collaborative approach during investigative proceedings. The commission also noted concurrent criminal case developments when determining the resolution terms.
All CFTC allegations against Mek Global, PhoenixFin, and Flashdot were dismissed with prejudice by the court. Additionally, counts II through V against Peken Global were dropped. This consent order effectively concludes the civil regulatory enforcement matter.
Prior DOJ Settlement Required $300 Million Payment From KuCoin
Peken Global entered a guilty plea in January 2025 for conducting an unlicensed money transmission operation. This plea stemmed from separate criminal proceedings initiated by the Department of Justice. The resolution mandated payment of $112.9 million in criminal penalties alongside $184.5 million in asset forfeiture.
The Justice Department brought charges against KuCoin as well as company founders Chun Gan and Ke Tang in that proceeding. Federal prosecutors asserted they coordinated to breach the Bank Secrecy Act. Allegations included that the exchange platform processed more than $5 billion in incoming funds and transmitted over $4 billion in questionable transaction proceeds.
The criminal settlement mandated that KuCoin withdraw from American markets for no less than two years. The CFTC noted that its $500,000 civil penalty accounted for the earlier $300 million criminal resolution. Officials confirmed the civil fine incorporated considerations of the prior guilty plea and associated financial sanctions.
The CFTC originally pursued civil fines, profit disgorgement, and permanent prohibitions on trading activities. Nevertheless, the finalized consent order excluded disgorgement provisions. The agency referenced Peken Global’s cooperative conduct during investigative work and related legal proceedings.
This consent order represents yet another US regulatory settlement involving KuCoin within the past fourteen months. The Manhattan court entered this most recent order on Monday. The determination now limits American participation on the exchange unless appropriate registration is secured.
