- Former New York Governor Andrew Cuomo advised cryptocurrency exchange OKX during a federal investigation that resulted in $505 million in fines.
- OKX pled guilty in February 2024 to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws.
- Cuomo reportedly influenced OKX to appoint his associate Linda Lacewell to its board of directors; she was recently named the company’s chief legal officer.
Cryptocurrency exchange OKX enlisted former New York Governor Andrew Cuomo as an advisor during a federal probe that ultimately led to the company pleading guilty to violations and agreeing to pay $505 million in penalties, according to a Bloomberg report published on April 2.
Cuomo, who is registered as an attorney in New York, provided legal advice to OKX regarding issues stemming from the investigation sometime after his resignation as governor in August 2021. According to Bloomberg’s sources, "He spoke with company executives regularly and counseled them on how to respond to the criminal investigation."
The Seychelles-based cryptocurrency exchange pled guilty on February 24 to operating an unlicensed money-transmitting business in violation of US Anti-Money Laundering laws. As part of the settlement, OKX agreed to pay $84 million in penalties and forfeit $421 million in fees earned primarily from institutional clients. The Department of Justice noted that these violations occurred from 2018 to 2024, despite OKX having implemented a policy in 2017 that officially prohibited US persons from using its platform.
Cuomo’s Advisory Role and Influence
Rich Azzopardi, a spokesperson for Cuomo, told Bloomberg that since resigning as governor, Cuomo has been providing private legal services to individuals and corporations on various matters. "He has not represented clients before a New York city or state agency and routinely recommends former colleagues for positions," Azzopardi added. OKX reportedly declined to comment on its relationships with outside firms.
Beyond legal advice, Bloomberg reported that Cuomo, who is currently running for mayor of New York City, influenced executive appointments at OKX. Specifically, he advised the company to add his associate Linda Lacewell to its board of directors. Lacewell, who previously served as superintendent of the New York Department of Financial Services, joined OKX’s board in 2024 and was appointed as the company’s chief legal officer on April 1.
OKX’s Compliance Commitments
Following the conclusion of the federal investigation, OKX stated it would engage a compliance consultant to address issues identified in the probe and strengthen its regulatory compliance program. Star Xu, OKX’s CEO, stated on February 24, "Our vision is to make OKX the Gold standard of global compliance at scale across different markets and their respective regulatory bodies."
The company’s efforts to improve compliance come as regulatory scrutiny of cryptocurrency exchanges continues to intensify globally, with authorities increasingly focused on anti-money laundering protocols and customer protection measures.
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