Andrew Cuomo advised OKX during $505M federal investigation
Former New York Governor Andrew Cuomo reportedly provided legal counsel to cryptocurrency exchange OKX during a federal investigation that resulted in the company agreeing to pay $505 million in fines and penalties.
The probe centered on violations of U.S. Anti-Money Laundering (AML) laws, with OKX pleading guilty to operating an unlicensed money-transmitting business.
Cuomo, a licensed attorney in New York, began advising OKX after resigning as governor in August 2021.
According to Bloomberg, Cuomo regularly engaged with company executives, offering guidance on how to navigate the criminal investigation.
A spokesperson for Cuomo confirmed his involvement in providing private legal services to corporations and individuals since his resignation.
The Seychelles-based crypto exchange admitted to breaches occurring between 2018 and 2024, despite having policies in place since 2017 to prevent U.S. users from accessing its platform.
As part of the settlement, OKX agreed to pay $84 million in penalties and forfeit $421 million in fees earned primarily from institutional clients.
OKX’s violations underscore the importance of robust compliance measures, particularly as governments intensify scrutiny over digital asset platforms.
In addition to legal advice, Cuomo reportedly influenced executive appointments at OKX.
Bloomberg reported that Cuomo recommended Linda Lacewell, a former superintendent of the New York Department of Financial Services, for a leadership role at the company.
Lacewell joined OKX’s board of directors in 2024 and was recently named its chief legal officer.
Following the conclusion of the investigation, OKX announced plans to enhance its regulatory compliance program.
CEO Star Xu stated that the company aims to establish itself as a global standard for compliance across various jurisdictions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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