Subsidiary of OKX in Aux Cayes, Fintech, Settles DOJ Probe for $505 Million
In the ever-evolving landscape of cryptocurrency, regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) are actively enforcing rules and investigating companies operating within the sector. This is evident in the ongoing cases against multiple crypto companies, including Robinhood, and the recent settlements that have been reached.
One such company under scrutiny is OKX, a prominent player in the crypto market. Despite claims of being one of the world's most regulatory compliant, licensed crypto companies, OKX does not hold any money transmitter licenses or registrations in the United States as of July 2025, according to reports. This contrasts with some statements that it is licensed in the U.S., which may appear inaccurate or outdated regarding U.S. licensing specifically.
OKX has faced significant regulatory challenges, notably lawsuits from Thai regulators for operating without a license and accusations from the U.S. Department of Justice (DOJ) of regulatory arbitrage and facilitating circumvention of IP restrictions. In response, OKX has taken strong compliance measures, including freezing accounts linked to Tornado Cash mixers to comply with U.S. OFAC sanctions, closing high-risk accounts, and deploying an internal compliance team of 150 blockchain analysts.
Despite these challenges, OKX continues to partner with licensed entities like Circle, a money transmitter licensed in New York, to facilitate compliance-compliant services such as seamless 1:1 USD-to-USDC conversions for its global customers. This strategic collaboration aims to enhance OKX's regulatory standing indirectly within the U.S. financial ecosystem.
In a significant development, Aux Cayes Fintech, an affiliate of OKX, has acknowledged operating as a money transmitter without a license and has agreed to pay a penalty of $84 million as part of a resolution with the DOJ. Aux Cayes Fintech has also forfeited fees earned from U.S. customers totaling approximately $421 million.
Meanwhile, the SEC has closed a case against Robinhood's crypto arm, which was one of the companies under investigation. This decision could signal a trend of resolving investigations against crypto companies. The SEC's actions against crypto companies, including Robinhood, are shaping the regulatory landscape for the crypto market, emphasising the importance of compliance.
OKX, in its response, has retained a compliance consultant to help remedy issues and enhance its overall compliance program. The company plans to continue working with the compliance consultant in the future.
In summary, while OKX actively pursues compliance and partnerships to address regulatory requirements, it remains unlicensed as a money transmitter in the U.S. and is under ongoing scrutiny by U.S. regulators. The settlement between Aux Cayes Fintech and the DOJ reflects growth for OKX, as it continues to navigate the complex and evolving regulatory landscape of the cryptocurrency market.
- In the context of the ongoing regulatory investigations, the Securities and Exchange Commission (SEC) has closed a case against Robinhood's crypto arm, potentially signaling a trend of resolving investigations against crypto companies.
- Despite reports of being one of the world's most regulatory compliant, licensed crypto companies, OKX does not hold any money transmitter licenses or registrations in the United States, as of July 2025, despite facing regulatory challenges such as lawsuits from Thai regulators and accusations from the U.S. Department of Justice (DOJ).
