The hammer has fallen on cryptocurrency exchange KuCoin. The US Department of Justice (DOJ) has charged KuCoin and its founders with a laundry list of offenses, including operating as an illegal exchange and failing to implement basic anti-money laundering (AML) protocols.

Unlicensed and Unregulated: A Recipe for Trouble

The DOJ alleges that KuCoin functioned as an unlicensed money transmitter, skirting regulations designed to prevent financial crimes. Worse yet, the exchange allegedly lacked even basic know-your-customer (KYC) procedures, leaving the door wide open for potentially illicit activity. This regulatory lapse, according to the DOJ, allowed a staggering $9 billion in suspicious transactions to flow through KuCoin.

The CFTC Piles On: Ether Back in the Spotlight

Adding to KuCoin's woes, the Commodity Futures Trading Commission (CFTC) filed its own charges, accusing the exchange of violating the Commodity Exchange Act. The CFTC is seeking fines and trading bans, while the DOJ is aiming for asset forfeiture and criminal penalties.

Hiding in Plain Sight: KuCoin's Alleged Deception

US Attorney Damien Williams blasted KuCoin for deliberately hiding the significant presence of US users on its platform. He further criticized KuCoin's complete disregard for AML safeguards, which allegedly transformed the exchange into a haven for money laundering.

Deja Vu: Echoes of the Binance Case

This isn't the first time US regulators have cracked down on a major crypto exchange. Just a few months ago, Binance faced similar charges that were eventually settled. Interestingly, the CFTC used this opportunity to reiterate its claim that Ethereum's Ether (ETH) falls under its regulatory purview as a commodity.

Crypto Market Shrugs, Ether Finds Solace in BlackRock's Embrace

Despite the bad news for KuCoin, the broader cryptocurrency market seemed unfazed. Bitcoin reclaimed the $70,000 mark, and Ether bounced back above $3,500 after dipping below $3,000 last week. This recovery can be partly attributed to a general market upswing, but BlackRock's recent foray into asset tokenization using Ethereum also played a role in boosting Ether's confidence.