Crypto firm OKX to pay $500 million for anti-money laundering violations

Driving the news: Aux Cayes Fintech Co. Ltd, which operates the exchange known as OKX (formerly, OKex), pled guilty to one count of operating an unlicensed money transmitting business.

• The penalties were a combination of forfeitures and fines.

What they're saying: "For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures," James E. Dennehy, an FBI assistant director, said in a statement.

• These acts took place, according to the Justice Department, over a period of seven years.

Between the lines: In the plea agreement, it's noted that OKX did not voluntarily disclose its violations, but it did cooperate with the investigation, which earned it a discount on its ultimate fine.

• It also notes that OKX began making remedial measures since 2022, an era when many in the industry were spending more on compliance.

Flashback: OKX is a big exchange — the fifth largest by volume, according to CoinGecko — but it's no Binance.

• Binance, the world's largest exchange, paid $4.3 billion, for similar allegations.

The bottom line: No one from OKX going to jail, unlike in the Binance case.