KuCoin
| KuCoin | |
|---|---|
|
| |
| Company type | Private |
| Founded | 2017; 9 years ago |
| Founders |
Chun Gan Ke Tang Johnny Lyu |
| Headquarters | Seychelles |
| Area served | Worldwide |
| Key people | BC Wong (CEO) |
| Services | Cryptocurrency exchange, margin trading, margin lending, OTC |
| Website | kucoin.com |
KuCoin is a Seychelles-based global cryptocurrency exchange that provides access to over 700 digital assets. The platform offers spot trading, margin trading, peer-to-peer fiat trading, futures trading, staking, and lending services to more than 30 million users worldwide.1
It was founded in China in 2017 but later relocated to Singapore in response to Chinese government restrictions on cryptocurrency companies, and subsequently moved its headquarters to the Seychelles.2
History
Early years and Hacks: 2017–2022
KuCoin was founded in 2017 by Chun Gan, Ke Tang and Johnny Lyu in China.3 It raised $20 million in 2018 from IDG Capital, Matrix Partners, and Neo’s venture arm to expand globally, develop technology, and launch an investment arm. Earlier, its 2017 ICO raised 5,500 Bitcoin, worth approximately $27.5 million.
In 2018, KuCoin relocated its headquarters from Hong Kong to Singapore.4 In November 2018, KuCoin secured $20 million in a Series A funding round, led by IDG Capital, Matrix Partners, and Neo Global Capital.5
On 25 September 2020, KuCoin, the Asian cryptocurrency exchange, suffered a theft of $281 million in cryptoassets. It marked the third-largest hack ever recorded on a cryptocurrency exchange.6 At that time, KuCoin CEO Johnny Lyu stated that the hack occurred after private
keys associated with crypto wallets were exposed. An internal security audit revealed that portions of Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out.7
KuCoin offered rewards of up to $100,000 for information leading to the identification of those responsible for the hack.8
In March 2025, North Korea linked Lazarus Group converted $300 million from ByBit’s $1.5 billion crypto heist, allegedly using sophisticated laundering to support the regime’s military programs.9 In February 2021, KuCoin CEO Johnny Lyu wrote in a blog post that the exchange had recovered $222 million (78%) through cooperation with partners, $17.45 million (6%) via law enforcement, and covered the remaining $45.55 million (16%) with its insurance fund.10
Growth and Fines: 2022–Present
KuCoin achieved a valuation of $10 billion after Jump Crypto led its pre-Series B funding round which raised $150 million in May 202211 to finance its Web 3.0 service development. KuCoin received a $10 million strategic investment from Susquehanna International Group in July 2022 to help build blockchain startups and expand its KCS and KCC ecosystems.12
The New York Attorney General Letitia James reached a $22 million settlement with KuCoin for running its business without proper registration in December 2023. The agreement requires KuCoin to refund $16.7 million to 177,800 New York investors and pay a $5.3 million penalty while it has to stop all operations in New York and block new account registrations from the state.13
The company KuCoin admitted its guilt to running a money transmission business without proper authorization in January 2025. The company agreed to pay 297.4 million dollars in fines and forfeiture while it would suspend its operations in the United States for two years.14
ERX Company Ltd. launched its digital exchange operation through a partnership with KuCoin in April 2025. The digital exchange began its official operations on April 22, 2025.15
On July 18 2025, KuCoin introduced xStocks which allowed worldwide users to access USDT-based tokenized stocks that existed in real-time backing through actual ownership of stocks. The system created opportunities for investors to access multiple asset forms while it connected conventional finance systems with cryptocurrency markets.16
The Austrian Financial Markets Authority (FMA) issued a business prohibition against KuCoin EU Exchange GmbH in February 2026, because the company failed to meet anti-money laundering requirements and counter-terrorist financing standards and financial sanctions compliance standards.17
Legal Status
United States
In March 2023, New York Attorney General, Letitia James sued KuCoin for operating without registration, misrepresenting itself as an exchange, and offering unregistered digital
assets, aiming to enforce compliance, block access, and protect investors.18 In December 2023, KuCoin reached a settlement with the New York Attorney General, agreeing to restrict access for New York users and pay $22 million to resolve the lawsuit.19
On March 26, 2024, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint against KuCoin in the Southern District of New York, alleging violations of the Commodity Exchange Act. The CFTC asserted that KuCoin offered unregistered derivatives, leveraged tokens, and futures to U.S. customers without proper registration or anti-money laundering controls. The complaint sought permanent injunctions, civil monetary penalties, and bans on future U.S. commodity trading activities, highlighting regulatory noncompliance.20
In January 2025, KuCoin’s operator and PEKEN Global Ltd found guilty of operating an unlicensed money transmitting through business, failing to implement adequate Anti-money laundering and Know You Customer programs, and agreed to pay over $297 million in fines and forfeitures, exiting the U.S. market.21
Canada
The Ontario Securities Commission (OSC) accused KuCoin of operating an unlicensed cryptocurrency trading platform which permitted Ontario residents to trade securities and derivatives without following the provincial securities regulations.22 By July 2022, OSC established permanent bans which prevented KuCoin from operating in Ontario capital
markets while the organization also imposed a $2 million administrative fine and $96,550.35 to pay for investigation expenses.23
FINTRAC imposed a $19,552,000 administrative penalty on Peken Global Limited (KuCoin) in September 2025 because the company did not register as a foreign money services business and failed to report large virtual currency transactions and submit suspicious transaction reports in Canada.24
Netherlands
The central bank of the Netherlands, De Nederlandsche Bank, reported in December 2022 that cryptocurrency exchange KuCoin operated in the country without proper registration. The bank reported that KuCoin operated without authorization to provide virtual and fiat currency exchange services while violating Anti-Money Laundering and Anti-Terrorist Financing Act requirements.25
United Kingdom
The Financial Conduct Authority of the United Kingdom issued a warning which included KuCoin among more than 140 digital asset companies in October 2023. The FCA stated that these firms were not authorized to provide financial services in the UK.26
India
India's Financial Intelligence Unit (FIU) granted KuCoin Virtual Asset Service Provider (VASP) registration in May 2024 after the company paid a 3.5 million INR penalty for previous regulatory non-compliance.27
Russia
In February 2023, Inca Digital published a report which accused KuCoin and Huobi of allowing their customers to use debit cards from Russian banks that faced sanctions including Sberbank to make transactions on their platforms which created a risk of U.S. and European sanctions violations.28
1 Bugcrowd, “KuCoin Managed Bug Bounty Program”, Achieved, Retrieved June 2024
2 WSJ, “KuCoin and Its Founders Face Criminal Charges Over Money-Laundering Violations”, Achieved, Retrieved March 2024
3 CoinPedia, “Kucoin”, Achieved, Retrieved 2017
4 TechCrunch, “Another crypto exchange goes old school as KuCoin raises $20M from VCs”, Achieved, Retrieved November 2018
5 The Business Times, “Crypto platform KuCoin raises US$20m in Series A funding”, Achieved, Retrieved November 2018
6 Elliptic, “KuCoin thief sells out millions in crypto tokens on decentralized exchanges - but Elliptic can still trace them”, Achieved, Retrieved September 2020
7 Nairametrics, “Hackers expose crypto wallets worth $150 million at Kucoin”, Achieved, Retrieved September 2020
8 Decrypt, “KuCoin Hacker Is Using DeFi Exchange Uniswap to Launder Funds”, Achieved, Retrieved September 2020
9 BBC, “North Korean hackers cash out hundreds of millions from $1.5bn ByBit hack”, Achieved, Retrieved March 2025
10 Forbes, “North Korean Hackers Accused Of ‘Biggest Cryptocurrency Theft Of 2020’—Their Heists Are Now Worth $1.75 Billion”, Achieved, Retrieved February 2021
11 KuCoin, “KuCoin Raises $150 Million at $10 Billion Valuation to Pioneer Exploration in Web 3.0”, Achieved, Retrieved May 2022
12 Business Wire, “KuCoin Announces $10 Million Strategic Investment From SIG”, Achieved, Retrieved July 2022
13 Attorney General, “Attorney General James Secures More Than $22 Million from Cryptocurrency Platform for Operating Illegally”, Achieved, Retrieved December 2023
14 Reuters, “KuCoin pleads guilty, agrees to pay nearly $300 million in US crypto case”, Achieved, Retrieved January 2025
15 TradingView, “Crypto exchange KuCoin enters crowded Thailand market”, Achieved, Retrieved April 2025
16 The Block, “KuCoin Launches xStocks, Delivering a One-Stop Access Point to Top Global Tokenized”, Achieved, Retrieved July 2025
17 AML Intelligence, “European Anti-Financial Crime Summit”, Achieved, Retrieved April 2026
18 Attorney General, “Attorney General James Continues Crackdown on Unregistered Cryptocurrency Platforms”, Achieved, Retrieved March 2023
19 Bloomberg, “KuCoin to Pay $22 Million, Exit NY Market to Resolve Lawsuit”, Achieved, Retrieved December 2023
20 Cadwalader, “Groundbreaking and Informative – CFTC’s KuCoin Complaint”, Achieved, Retrieved March 2024
21 United States Attorney's Office, “Kucoin Pleads Guilty To Unlicensed Money Transmission Charge And Agrees To Pay Penalties Totaling Nearly $300 Million”, Achieved, Retrieved January 2025
22 OSC, “OSC takes action against second non-compliant international crypto asset trading platform”, Achieved, Retrieved June 2021
23 Financial Post, “OSC metes out penalties, market ban in pair of crypto trading cases”, Achieved, Retrieved June 2022
24 FINTRAC, “FINTRAC imposes an administrative monetary penalty on Peken Global Limited”, Achieved, Retrieved September 2025
25 CoinDesk, “Dutch Central Bank Says Crypto Exchange KuCoin Is Operating Without a License in Netherlands”, Achieved, Retrieved May 2023
26 Bloomberg, “Huobi, KuCoin Among Crypto Firms Added to UK Watchdog’s Warning List”, Achieved
27 Economic Times, “Financial Intelligence Unit clears Binance and Kucoin to be Virtual Asset Service Providers”, Achieved, Retrieved May 2024
28 Economic Times, “Company Profile: Financial Intelligence Unit clears Binance and Kucoin to be Virtual Asset Service Providers”, Achieved