Key Points
Peken Global Limited faces a $500,000 civil monetary penalty from the US District Court for the Southern District of New York.
KuCoin’s operating entity must prohibit American residents from platform access without securing CFTC registration.
The settlement brings closure to all civil claims filed by the Commodity Futures Trading Commission against Peken Global.
Claims against Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. received dismissal with prejudice from the CFTC.
Disgorgement was waived by the court following recognition of Peken Global’s investigative cooperation.
A federal court has finalized a settlement requiring KuCoin’s operating company to pay a half-million dollar penalty while implementing restrictions on American traders. The decision concludes a regulatory action initiated by the Commodity Futures Trading Commission targeting Peken Global Limited. According to the ruling, the entity must prevent US-based individuals from accessing the platform without completing regulatory registration.
Federal Court Approves CFTC Agreement With KuCoin Entity
The US District Court for the Southern District of New York has finalized a consent agreement involving Peken Global Limited. The Turks and Caicos-registered corporation received a $500,000 civil monetary sanction from the court. The Commodity Futures Trading Commission disclosed the settlement outcome on Monday, confirming resolution of outstanding claims.
The judicial order establishes a permanent prohibition preventing Peken Global from granting US citizens trading privileges on KuCoin absent proper registration. The entity must obtain foreign board of trade designation before permitting American access. The regulatory body emphasized that the decree “permanently enjoins Peken Global from future violations as charged.”
The CFTC filed enforcement proceedings in March 2024 targeting Peken Global along with three affiliated corporations. Regulatory officials brought charges against Mek Global Ltd., PhoenixFin PTE Ltd., and Flashdot Ltd. in conjunction with Peken Global. Authorities alleged these entities maintained an unregistered digital asset derivatives platform while operating without futures commission merchant authorization.
The legal filing further accused the companies of neglecting to establish adequate customer verification systems. The CFTC characterized KuCoin’s know-your-customer protocols as “sham” procedures. Regulators asserted the exchange enabled US-based customers to circumvent access restrictions.
The settlement terms excluded disgorgement requirements. The CFTC acknowledged Peken Global’s collaborative approach throughout the investigative process. The agency additionally factored in concurrent criminal proceedings when determining penalties.
The judicial body dismissed all CFTC allegations against Mek Global, PhoenixFin, and Flashdot with prejudice. Counts II through V against Peken Global likewise received dismissal. The consent decree thereby brings the civil enforcement matter to conclusion.
Earlier DOJ Resolution Required $300 Million Payment From KuCoin
Peken Global entered a guilty plea in January 2025 for conducting unlicensed money transmission operations. The admission originated from separate Department of Justice proceedings. Terms mandated $112.9 million in criminal penalties plus $184.5 million in asset forfeiture.
Federal prosecutors charged KuCoin alongside company founders Chun Gan and Ke Tang in the criminal matter. Officials alleged conspiracy to breach Bank Secrecy Act requirements. Authorities claimed the platform processed more than $5 billion in receipts and transmitted over $4 billion in questionable transactions.
The criminal settlement mandated a minimum two-year withdrawal from US operations. The CFTC explained that the $500,000 civil penalty accounted for the preceding $300 million resolution. Regulators confirmed the civil sanction incorporates the prior guilty plea and financial consequences.
The CFTC originally pursued civil monetary sanctions, asset disgorgement, and lifetime trading prohibitions. The finalized consent decree omitted disgorgement provisions. The commission acknowledged Peken Global’s investigative assistance and participation in related proceedings.
The consent agreement represents a second major US regulatory settlement involving KuCoin within fourteen months. The court formalized the most recent order on Monday in New York. The decision now prevents American participation on the exchange without appropriate regulatory compliance.
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