Crypto alternate OKX has enlisted former New York Governor Andrew Cuomo as a authorized advisor amid its $505 million federal settlement with U.S. authorities, in accordance with a Bloomberg report published on April 2.
Cuomo, a licensed New York lawyer, reportedly started advising OKX following his resignation from the governorship in August 2021.
He labored intently with firm executives, offering counsel on find out how to navigate the federal investigation that culminated in OKX pleading responsible to working an unlicensed money-transmitting enterprise in violation of U.S. anti-money laundering legal guidelines.
DISCOVER: Best Meme Coin ICOs to Invest in March 2025
OKX Agrees to $505M Settlement Over Unlicensed Operations
On February 24, the Seychelles-based alternate agreed to pay $84 million in civil penalties and forfeit $421 million in charges largely earned from institutional shoppers.
The U.S. Division of Justice acknowledged that these violations befell between 2018 and 2024, regardless of the platform’s official coverage since 2017 barring U.S. customers from transacting on its alternate.
Cuomo’s spokesperson, Wealthy Azzopardi, confirmed that Cuomo has been offering non-public authorized providers to firms and people since leaving workplace, however emphasised that he has not represented any shoppers earlier than New York state or metropolis companies.
Azzopardi additionally famous that Cuomo regularly recommends former colleagues for company roles.
Whereas OKX declined to touch upon its relationship with Cuomo, Bloomberg reported that the previous governor had additionally influenced management choices on the firm.
Notably, Cuomo suggested OKX to nominate longtime affiliate and former U.S. Legal professional Linda Lacewell to the board.
Lacewell, who beforehand served as superintendent of the New York Division of Monetary Companies, joined the board in 2024 and was named OKX’s chief authorized officer on April 1.
In response to the settlement, OKX has dedicated to strengthening its compliance framework.
The corporate introduced plans to rent a compliance marketing consultant to assist deal with regulatory considerations raised by the investigation.
“Our imaginative and prescient is to make OKX the gold customary of world compliance at scale throughout totally different markets and their respective regulatory our bodies,” stated OKX CEO Star Xu in a publish on X dated February 24.
We are going to proceed to mature our compliance operations and proceed to work intently with international regulators. Our imaginative and prescient is to make OKX the gold customary of world compliance at scale throughout totally different markets and their respective regulatory our bodies. I’m happy with our firm. https://t.co/kZEyuzL9K5
— Star (@star_okx) February 24, 2025
EXPLORE: 10 Best AI Crypto Coins to Invest in 2025
Final month, OKX quickly suspended its decentralized finance (DeFi) services, citing intensified media scrutiny and a coordinated assault allegedly involving the North Korean Lazarus Group.
The corporate acknowledged that whereas it usually stays targeted on innovation, it couldn’t ignore the timing of those accusations, particularly because it steps up efforts to fight monetary crime.
The transfer got here after rising aggressive strain and regulatory consideration, notably from the European Union.
OKX’s choice comes as EU regulators examine the platform over claims of laundering $100 million from the February 2025 Bybit hack. The probe threatens the alternate’s MiCA license, which is important for working in Europe beneath the brand new crypto regulatory framework.
EXPLORE: Best New Cryptocurrencies to Invest in 2025
Key Takeaways
-
OKX crypto alternate employed former New York Governor Andrew Cuomo as a authorized advisor throughout its $505 million U.S. settlement. -
Cuomo influenced inner choices, together with the appointment of OKX’s new chief authorized officer. -
OKX faces mounting regulatory strain within the U.S. and EU, prompting compliance upgrades and repair suspensions.
Source link