Cryptocurrency alternate OKX reportedly employed former New York Governor Andrew Cuomo to advise it over the federal probe that resulted within the agency pleading responsible to a number of violations and agreeing to pay $505 million in fines and penalties.
Cuomo, a New York-registered legal professional, suggested OKX on authorized points stemming from the probe someday after August 2021 when he resigned as New York overnor, Bloomberg reported on April 2, citing individuals acquainted with the matter.
“He spoke with firm executives frequently and endorsed them on how to reply to the felony investigation,” Bloomberg mentioned.
The Seychelles-based agency pled guilty to working an unlicensed money-transmitting enterprise in violation of US Anti-Cash Laundering legal guidelines on Feb. 24 and agreed to pay $84 million value of penalties whereas forfeiting $421 million value of charges earned from largely institutional clients.
The breaches occurred from 2018 to 2024 regardless of OKX having an official coverage stopping US individuals from transacting on its crypto alternate since 2017, the Division of Justice famous on the time.
A spokesperson for Cuomo, Wealthy Azzopardi, advised Bloomberg that Cuomo has been offering non-public legal services representing people and firms on quite a lot of issues since resigning as New York governor.
“He has not represented shoppers earlier than a NY city or state company and routinely recommends former colleagues for positions,” Azzopardi added.
OKX reportedly wasn’t prepared to touch upon its relationships with outdoors companies.
Cuomo additionally influenced OKX to make govt appointments: Bloomberg
Cuomo, who’s now operating for mayor of New York Metropolis, additionally suggested OKX to nominate his pal US Legal professional Linda Lacewell to OKX’s board of administrators, Bloomberg mentioned.
Lacewell, a former superintendent of the New York Division of Monetary Companies, was added to the board in 2024 and was named OKX’s new chief authorized officer on April 1, according to a current firm assertion.
Supply: Linda Lacewell
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After the investigation concluded, OKX mentioned it might search out a compliance consultant to treatment the problems stemming from the federal probe and bolster its regulatory compliance program.
“Our imaginative and prescient is to make OKX the gold commonplace of world compliance at scale throughout completely different markets and their respective regulatory our bodies,” OKX CEO Star Xu said in a Feb. 24 X publish.
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