Aux Cayes Fintech Completes Investigation Resolution

Aux Cayes FinTech Co. Ltd. (referred to as “the Company”), which is one of the affiliates of OKX, has recently come to an agreement with the Department of Justice (DOJ) concerning an investigation into its operations. The Company acknowledged that it did not have the necessary license to function as a money transmitter in the United States. This acknowledgment was part of resolving the investigation. The Company also recognized that due to some past compliance issues, a limited number of U.S. customers were able to trade on its global platform in the past.

It’s important to note that the U.S. customers who participated in these trades are no longer using the platform and they only represented a small fraction of the overall number of customers worldwide. There were no claims made about any harm to these customers, no individuals from the Company were charged with any wrongdoing, and there was no requirement for a government-appointed monitor as part of the agreement. As part of the resolution, the Company has agreed to pay an $84 million fine and return about $421 million in fees collected from the U.S. customers, mostly earned from a few large clients. In response to these issues, the Company voluntarily hired a compliance consultant to address these compliance gaps and improve its practices going forward. The DOJ appreciated the Company’s cooperation during the investigation.

OKX aims to be a respected and reliable crypto platform for millions of users worldwide, following local laws and regulations in the countries where it operates. Originally starting as a small venture, the Company has taken steps to close any potential gaps in compliance, which led to this recent decision. They are pleased with the outcome of the agreement and are excited to continue expanding globally while striving to be the most trusted and technology-focused crypto exchange.

Before settling the case, OKX made significant progress in establishing a strong compliance structure. This resolution represents an essential milestone in the Company’s commitment to maintaining high standards in compliance, enhancing collaboration with regulators, and ensuring integrity across the industry as the crypto landscape continues to evolve. The settlement shows the Company’s growth and preparedness to work alongside regulators to create solutions that will benefit both its clients and the broader crypto market.

At OKX, regulatory compliance is central to its operations. They recognize their role in driving responsible innovation and take it seriously. Over the last couple of years, the firm has developed and continually invests in a comprehensive global compliance program that includes several initiatives aimed at improving oversight, security of the platform, and the effectiveness of their compliance efforts. These initiatives include:

– Improving the Know Your Customer (KYC) program to better understand customer risk profiles both during the initial signup and over time.
– Expanding the Enhanced Due Diligence (EDD) program to more effectively manage any significant risk factors.
– Implementing advanced Anti-Money Laundering (AML) tools and a Transaction Monitoring System (TMS) that watches for suspicious activities both during and after transactions.
– Building a team of over 150 experts with experience in law enforcement and regulatory agencies to fight financial crime and collaborate with authorities worldwide.
– Introducing geo-blocking technology to prevent fraudulent behavior and breaches of compliance.
– Using third-party systems for market surveillance, emphasizing transparency and fairness for all customers.

These investments help OKX stay ahead in compliance as regulations change around the world and strengthen its mission to build trust in the crypto sector.

Moving forward, OKX is dedicated to maintaining regulatory compliance and offers its services in various countries globally. The Company is also noted for its leadership in fighting financial crime related to crypto, including terrorism financing and evasion of sanctions, and works closely with law enforcement worldwide. As the crypto industry evolves, OKX remains committed to prioritizing innovation alongside compliance, setting benchmarks for transparency, regulatory adherence, and user security. They openly acknowledge past challenges and are focused on fostering a secure and trustworthy environment for their customers, employees, and partners globally.