US charges KuCoin crypto exchange with anti-money laundering failures

FILE PHOTO: Representations of cryptocurrency is seen in front of a Kucoin logo in this illustration taken on February 9, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Federal prosecutors in Manhattan on Tuesday charged KuCoin, one of the world's largest cryptocurrency exchanges, with violating U.S. anti-money laundering laws by failing to vet customers, allowing billions of dollars in illicit funds to be transferred since its founding in 2017.

Prosecutors said the Seychelles-based exchange sought business from U.S. customers without registering with the Treasury Department and putting in place procedures to verify clients' identities as required by U.S. law.