Aux Cayes Fintech Resolves Investigation

Today Aux Cayes FinTech Co. Ltd. (the “Company”), one of many OKX affiliates, resolved a Department of Justice investigation by acknowledging that it had not obtained a license to operate as a money transmitter. In resolving the case, the Company acknowledged that, as a result of legacy compliance gaps, certain U.S. customers had in the past traded on the company’s global platform.

The total number of U.S. customers involved – which are no longer on the platform – amounted to a small percentage of the Company’s worldwide customer population. There were no allegations of customer harm, no charges against any Company employee and no government appointed monitor as part of the settlement. To resolve the issue, the Company agreed to pay a penalty of $84 million, and to forfeit fees earned from these US customers over the period, which was approximately $421 million, a majority of which comes from a few institutional clients. In recognition of these gaps, the Company, on its own initiative, voluntarily retained a compliance consultant to help remedy the issues and enhance its overall compliance program, and plans to continue with this consultant into the future. As the DOJ noted in the agreement resolving the case, the Company cooperated with the DOJ; the company appreciates their collaboration on this resolution.

OKX prides itself in being a trusted crypto venue for millions of people around the world, consistently upholding local laws and regulations in all countries in which we operate. We began as a start-up, and over time we have taken affirmative action to address potential gaps, which is the spirit of the Company’s decision here.

We are pleased with the resolution and look forward to implementing our global expansion plans and maintaining our status as the most trusted and technology-led crypto exchange in the world.

Prior to the resolution, OKX also made substantial strides in building out a robust compliance infrastructure: The resolution marks a pivotal step in the company’s ongoing commitment to compliance excellence, deeper regulatory collaboration, and industry-wide integrity in keeping with the evolution of the crypto sector. This settlement reflects growth and positions OKX to continue working with regulators and developing solutions that benefit our customers and the crypto market at large.

Commitment to Compliance and Innovation At OKX, regulatory compliance is at the core of our business operations, and we take our responsibility to set the standard for responsible innovation seriously. Over the last two years, the firm has built out, and continually invests in, a robust risk- based global compliance program including a series of key initiatives to strengthen oversight, platform security, and the overall effectiveness of our program:

• Strengthening our global Know Your Customer (KYC) program and Customer Risk Rating (CRR) system in order to ascertain and assess customer risk profiles, both at the time of onboarding and throughout the customer’s lifecycle on the platform.

• Expanding the Enhanced Due Diligence (EDD) program to better mitigate any heightened risk factors on the exchange.

• Implementing industry-leading Anti-Money Laundering (AML) and sanctions compliance tools, including a proprietary typology and behavior-driven Transaction Monitoring System (TMS) to detect and deter illicit activity, both in real-time and post-transaction.

• Building out a financial crime and blockchain intelligence and investigative team made up of 150+ personnel with prior law enforcement and regulatory agency experience, who actively cooperate with law enforcement agencies across the globe.

• Implementing sophisticated geo-blocking and geo-tracing technology solutions to combat potential fraudulent activity or circumvention of compliance controls.

• Integrating third party solutions to conduct market surveillance because we firmly believe in the value of providing an open, fair, and transparent market to our customers.

These investments ensure that OKX remains at the forefront of compliance as the global regulatory landscape evolves, and allow the company to continue doing its part fostering trust and integrity within the crypto ecosystem.

Global Regulatory Engagement and Future Outlook OKX is committed to regulatory compliance and operates regulatory compliant services in a number of other jurisdictions around the world. The Company is also recognized for its leadership in combating crypto-related financial crime, terrorism financing and sanctions evasion, and OKX works closely with enforcement globally.

As the crypto landscape evolves, OKX continues to prioritize innovation with compliance, setting industry benchmarks for transparency, regulatory compliance, and user security. The company takes full accountability for past shortcomings and we are dedicated to moving forward—ensuring a safe, compliant, and trusted environment for our customers, employees, and partners worldwide.