Crypto Exchange Enforcement Actions & Fines in 2025

crypto exchange fines have hit record levels in 2025, with regulators worldwide handing out multi‑hundred‑million dollar penalties for weak anti‑money‑laundering (AML) controls and market‑manipulation schemes. If you run a digital‑asset platform or invest in one, you’ll want to know which agencies are cracking down, why they’re doing it, and how to stay out of the crosshairs.

Quick Take

• U.S. DOJ fined OKX $500million for AML failures and illegal U.S. transactions.
• SEC secured $46million default judgment against three crypto‑mining and trading companies for a multi‑level‑marketing fraud.
• FINRA settled two broker‑dealer cases for $85000 each, targeting undisclosed crypto affiliates.
• Global AML fines topped $6billion in the first half of 2025.
• Key compliance gaps: inadequate KYC, missing sanctions screening, and failure to register as a money‑service business.

Why 2025 Is a Turning Point for Crypto Enforcement

Regulators have moved from a “wait and see” stance to an aggressive, coordinated approach. The Department of Justice (DOJ), Securities and Exchange Commission (SEC), and Financial Industry Regulatory Authority (FINRA) are each deploying specialized teams that understand blockchain‑specific risk vectors. Their combined actions have generated over $6billion in AML fines and dozens of high‑profile criminal prosecutions, signaling that non‑compliance is now an existential threat for exchanges.

DOJ’s Record‑Breaking OKX Settlement

On February24, the OKX is a Seychelles‑based cryptocurrency exchange founded in 2017 by blockchain entrepreneur Star Xu was hit with a $500million penalty after a year‑long DOJ investigation uncovered massive AML lapses. The agency found that OKX facilitated over $5billion in suspicious transfers because the platform deliberately encouraged U.S. users to submit falsified identification documents, despite publicly banning American customers.

The settlement included an $84million civil fine and a $420million forfeiture of illicit proceeds. Beyond the cash hit, OKX was forced to register as a money‑service business with the U.S. Treasury and overhaul its transaction‑monitoring and sanctions‑screening systems.

Market‑Manipulation Prosecutions in the District of Massachusetts

While the OKX case focused on AML, the DOJ’s criminal docket also features a wave of market‑manipulation prosecutions. Since October2024, the District of Massachusetts is a federal court that has become a hub for crypto‑related fraud cases has charged 17 individuals for operating wash‑trading bots that artificially inflated volumes of meme coins and newly launched tokens.

The scheme involved coordinated “match trading” where bots placed simultaneous buy and sell orders, creating the illusion of liquidity. Prosecutors argue that the practice misleads investors and skirts securities‑law safeguards, resulting in several years of prison sentences for the ringleaders.

SEC’s Multi‑Faceted Crackdown

The SEC has stayed true to its mandate of protecting investors from fraud and unregistered securities offerings. Three notable 2025 actions illustrate the breadth of its focus:

• PGI Global is a crypto‑trading firm accused of running a Ponzi‑style scheme - Founder RamilPalafox was charged with misappropriating $57million and promising unrealistic returns.
• Unicoin is a token project whose executives faced securities‑law violations for false disclosures - The SEC alleges the team sold unregistered securities and misled investors about platform security.
• MCC International Corp. is a crypto‑mining and trading firm involved in a multi‑level‑marketing fraud, alongside CPTLCoin Corp. is a sister mining operation and Bitchain Exchanges is the trading venue used to lock investors into the scheme. Together, the entities were ordered to disgorge $28.5million and pay $7.8million in prejudgment interest.

These cases underscore the SEC’s dual strategy: enforce traditional securities rules while expanding its reach into mining, staking, and “investment‑as‑a‑service” models.

FINRA’s Forward Program Targets Broker‑Dealers

FINRA has rolled out the “FINRA Forward” initiative to address the rising number of broker‑dealers offering crypto products without proper disclosures. In May2025, a broker‑dealer settled for $85000 after the regulator found that retail investors were not warned that the crypto offerings were provided through an unregistered affiliate. A second settlement in July2025 imposed the same fine for similar omissions, illustrating a pattern of enforcement against traditional financial firms entering the crypto space without robust compliance frameworks.

Common Compliance Shortfalls Across the Industry

Despite varied enforcement angles, the underlying failures are strikingly similar:

1. Weak customer due diligence - Many platforms still rely on superficial KYC checks, allowing fraudulent identities to slip through.
2. Inadequate transaction monitoring - Real‑time analytics and risk‑scoring engines are often under‑invested, missing large‑scale suspicious flows.
3. Missing sanctions screening - Failure to flag parties on OFAC or EU sanction lists leads to severe civil penalties.
4. Failure to register as a Money‑Service Business (MSB) - The DOJ repeatedly penalizes firms that avoid registration to dodge AML oversight.
5. Poor disclosure of affiliate relationships - FINRA’s actions show that hiding third‑party crypto partners can trigger enforcement.

Addressing these gaps early can mean the difference between a $50million fine and a business‑ending shutdown.

Agency‑By‑Agency Comparison

Preparing Your Exchange for the New Enforcement Landscape

Here’s a practical checklist that translates regulator expectations into day‑to‑day operations:

1. Register as an MSB with the U.S. Treasury if you serve U.S. customers, and file the required BSA reports.
2. Implement tiered KYC - Use document verification, biometric checks, and ongoing monitoring for high‑risk users.
3. Deploy real‑time transaction monitoring that flags patterns like rapid transfer chains, round‑trip trades, and transactions to high‑risk jurisdictions.
4. Integrate sanctions screening APIs covering OFAC, EU, UK, and UN watchlists, and automatically block matches.
5. Document all affiliate relationships - Ensure broker‑dealers disclose crypto partners in offering memoranda to satisfy FINRA.
6. Conduct regular internal audits - Engage third‑party AML consultants at least annually to test the effectiveness of controls.
7. Stay updated on regulatory initiatives - Follow SEC’s Project Crypto roadmap and DOJ press releases for emerging enforcement trends.

Adopting these steps early not only reduces fine risk but also builds trust with investors, a competitive edge in a market where confidence is scarce.

Frequently Asked Questions