OKX, one of the world’s largest cryptocurrency exchanges, has reached a settlement with U.S. authorities after allegedly facilitating billions in suspicious transactions. The company’s affiliate, Aux Cayes FinTech Co. Ltd., agreed to pay over $500 million in penalties and forfeited fees to resolve charges brought by the U.S. Department of Justice.

The settlement stems from OKX’s failure to obtain proper licensing as a money transmitter while actively soliciting U.S. customers, particularly in the Southern District of New York. According to Acting U.S. Attorney Matthew Podolsky, the exchange facilitated more than $5 billion in “suspicious transactions and criminal proceeds.”

This regulatory action follows ongoing scrutiny of the company. OKcoin, OKX’s American division, received a subpoena from the Commodity Futures Trading Commission (CFTC) in February 2023. The subpoena referenced “certain persons engaged in fraud and other unlawful conduct with respect to digital asset transactions.”

Sources familiar with the situation suggest that the CFTC’s investigation may be connected to a flash crash of OKX’s native token in January 2024. Following this incident, OKX promised to compensate users for their losses.

Internal documents reveal that OKX had established “a new ethics and compliance helpline” earlier this year, designed to provide employees with “a confidential and secure space” to report concerns about ethical conduct, policy violations, or suspected illegal behavior.

When approached for comment, OKX representatives did not immediately respond, while a CFTC spokesperson declined to comment on the matter.

The settlement highlights ongoing regulatory challenges facing cryptocurrency exchanges operating in the United States, particularly those based overseas but serving American customers.