Andrew Cuomo Advised OKX During FBI Probe; Exchange Settles $505M for AML Violations

Andrew Cuomo’s Ties to Crypto Giant OKX Revealed Amid $500M U.S. Settlement and FBI Probe

Former New York Governor Andrew Cuomo, now a mayoral candidate, was a paid adviser to OKX, a major cryptocurrency exchange, during an FBI investigation into the platform’s anti-money laundering violations. This revelation comes as OKX settles with U.S. authorities for a staggering $505 million.

• Cuomo advised OKX on policy and FBI investigation strategies.
• OKX settled for $505M for violating U.S. anti-money laundering laws.
• OKX facilitated over $1T in U.S. transactions despite restrictions.
• Linda Lacewell, a former NY financial regulator and ally of Cuomo, joined OKX’s board.

Did you know that former New York Governor Andrew Cuomo was advising a major crypto exchange during an FBI investigation? This surprising fact adds a whole new twist to the story of OKX, a leading cryptocurrency exchange that recently settled with U.S. authorities for $505 million due to violations of anti-money laundering laws. As a mayoral candidate, Cuomo’s involvement in advising OKX on policy issues and strategies for responding to an FBI and Southern District of New York investigation raises questions about the intersection of politics and the crypto world.

OKX, operated by Aux Cayes FinTech Co., faced severe scrutiny for its operations, culminating in a hefty settlement in February 2025. The Federal Bureau of Investigation (FBI) and the Southern District of New York found that OKX had violated laws against illegal money transfers by allowing U.S. customers to access its platform without proper registration and compliance measures. Between 2018 and early 2024, OKX handled over $1 trillion in money transfers from U.S. customers, despite clear policies prohibiting U.S. users from accessing the platform. This staggering amount of transactions highlights the scale of OKX’s non-compliance and the challenges regulators face in overseeing offshore crypto operations.

Adding to the intrigue, OKX allegedly encouraged its users to bypass geographic restrictions, even providing advice on how to submit false information to evade compliance procedures. This blatant disregard for regulatory standards underscores the need for robust enforcement mechanisms within the crypto sector. U.S. Attorney Matthew Podolsky emphasized the severity of OKX’s violations:

“For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system,” U.S. Attorney Matthew Podolsky said in a February news release. “As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.”

The appointment of Linda Lacewell as OKX’s chief legal officer further ties this case to political circles. Lacewell, a former superintendent of the New York Department of Financial Services and a longtime ally of Andrew Cuomo, was brought on board to navigate the exchange through its regulatory troubles. Her role at OKX, suggested by Cuomo, exemplifies the complex interplay between regulatory oversight and political influence in the crypto world.

The settlement agreement mandates that OKX must maintain an external compliance consultant until February 2027 to ensure adherence to regulatory standards. This requirement is a testament to the seriousness of OKX’s violations and the ongoing efforts to enforce compliance in the cryptocurrency industry.

The case of OKX serves as a stark reminder of the challenges and responsibilities facing cryptocurrency exchanges, particularly those operating offshore. It also highlights the growing role of political figures in shaping the regulatory landscape of the crypto sector, a dynamic that could have far-reaching implications for how cryptocurrencies are governed and perceived in the future.

OKX’s operations and the significant volume of transactions it handles provide context for the scale of its regulatory violations. As one of the world’s largest cryptocurrency exchanges, OKX allows trading in over 300 cryptocurrencies and derivative products. The settlement and subsequent compliance requirements could impact OKX’s operations and its ability to expand into new markets, as mentioned in the announcement of Linda Lacewell’s appointment.

The involvement of high-profile political figures like Andrew Cuomo in advising cryptocurrency platforms underscores the potential influence of political figures in shaping the regulatory landscape of cryptocurrencies. This case is part of a broader trend of increasing regulatory scrutiny on cryptocurrency exchanges, particularly those operating offshore.

Furthermore, the technological challenges and solutions related to implementing effective Know Your Customer (KYC) and Anti-Money Laundering (AML) processes in cryptocurrency exchanges are crucial. OKX’s failures in this area highlight the need for robust technological solutions to ensure compliance with regulatory standards.

Key Takeaways and Questions

• What was Andrew Cuomo’s role with OKX?

  Andrew Cuomo served as a paid adviser to OKX, providing guidance on policy issues and strategies for responding to an FBI and Southern District of New York investigation.

• What were the specific allegations against OKX?

  OKX was accused of violating U.S. anti-money laundering laws by allowing U.S. customers to access its platform without proper registration and compliance measures, facilitating over $1 trillion in transactions from U.S. customers, and encouraging users to bypass geographic restrictions.

• How much did OKX agree to pay in the settlement?

  OKX agreed to pay approximately $505 million in fines and forfeitures, including an $84 million fine and a $420 million forfeiture.

• Who is Linda Lacewell and what is her connection to Andrew Cuomo and OKX?

  Linda Lacewell is the former superintendent of the New York Department of Financial Services and a longtime ally of Andrew Cuomo. She was appointed as OKX’s chief legal officer, a position suggested by Andrew Cuomo.

• What measures has OKX been required to implement following the settlement?

  OKX is required to maintain an external compliance consultant on its payroll until February 2027 to ensure continued adherence to regulatory standards.

• How might this case impact the broader cryptocurrency industry?

  The OKX case serves as a cautionary tale for other cryptocurrency exchanges, emphasizing the importance of compliance with U.S. regulations, even for offshore entities. It could lead to increased scrutiny and stricter enforcement of financial regulations across the industry.

• What are the technological challenges in implementing KYC and AML processes in crypto exchanges?

  Implementing effective KYC and AML processes in cryptocurrency exchanges involves significant technological challenges, such as ensuring privacy while verifying identities and detecting suspicious transactions in real-time. OKX’s failures highlight the need for robust technological solutions to meet these challenges.