KuCoin and its founders, Chun Gan and Ke Tang, face US criminal charges for alleged money transmission and Bank Secrecy Act violations.

The CFTC filed a civil suit against KuCoin for operating without proper registration as a futures commission merchant, swap execution facility, or designated contract market.

Ethereum and Litecoin have been officially classified as commodities by the CFTC, a significant stance in the ongoing debate over cryptocurrency regulation.

The CFTC's action underscores the regulatory dispute between the CFTC and SEC regarding jurisdiction over the digital assets sector.

Despite legal challenges, KuCoin maintains that customer assets remain secure and is actively seeking legal clarification.

KuCoin's native token, KCS, experienced a 13.5% drop following the announcement of the indictment and lawsuit.

With a user base of 30 million registered across more than 200 countries, KuCoin advises customers to do their market research before engaging in crypto investments.