WASHINGTON, March 30 — The Commodity Futures Trading Commission said a U.S. federal court has entered a consent order against Peken Global Limited, a company associated with the operation of the KuCoin exchange, for allowing U.S. participants to access its trading system without registering as a foreign board of trade, according to a CFTC press release.
The U.S. District Court for the Southern District of New York granted a permanent injunction prohibiting Peken Global from future violations of the Commodity Exchange Act, as charged, and ordered the company to pay a $500,000 civil monetary penalty, the agency said.
Enforcement outcome and court order terms
The CFTC said the order resolves charges that Peken Global permitted U.S. participants to trade directly on its electronic trading and order-matching system without obtaining the required registration.
In addition to the monetary penalty, the court permanently enjoined the company from engaging in conduct that violates the Commodity Exchange Act provisions cited in the complaint.
The CFTC said it did not seek, and the court did not impose, disgorgement in this case.
Foreign board of trade registration requirement
According to the CFTC, the violations relate to Peken Global’s failure to register as a foreign board of trade, a regulatory framework that applies to non-U.S. trading venues that provide U.S. participants with direct access to their platforms.
The case centers on allowing U.S. participants to trade directly on its electronic trading and order-matching system without the required regulatory authorization.
Parallel criminal proceedings and cooperation factors
The CFTC said the outcome reflects Peken Global’s cooperation in its investigation and related proceedings, including a parallel criminal case in which the company pleaded guilty to one count of operating an unlicensed money transmitting business.
The agency noted that a forfeiture order was imposed in the criminal matter, which the court considered in the civil resolution.
Resolution of claims against affiliated entities
The court also entered an order of voluntary dismissal with prejudice for other defendants named in the CFTC’s complaint — Mek Global Limited, PhoenixFin PTE Ltd., and Flashdot Limited — bringing the agency’s case to a close.
The consent order further dismisses with prejudice several counts in the original complaint filed on March 26, 2024, concluding the enforcement action.
