Crypto exchange OKX has enlisted former New York Governor Andrew Cuomo as a legal advisor amid its $505 million federal settlement with U.S. authorities, according to a Bloomberg report published on April 2.
Cuomo, a licensed New York attorney, reportedly began advising OKX following his resignation from the governorship in August 2021.
He worked closely with company executives, providing counsel on how to navigate the federal investigation that culminated in OKX pleading guilty to operating an unlicensed money-transmitting business in violation of U.S. anti-money laundering laws.
DISCOVER: Best Meme Coin ICOs to Invest in March 2025
OKX Agrees to $505M Settlement Over Unlicensed Operations
On February 24, the Seychelles-based exchange agreed to pay $84 million in civil penalties and forfeit $421 million in fees largely earned from institutional clients.
The U.S. Department of Justice stated that these violations took place between 2018 and 2024, despite the platform’s official policy since 2017 barring U.S. users from transacting on its exchange.
Cuomo’s spokesperson, Rich Azzopardi, confirmed that Cuomo has been providing private legal services to corporations and individuals since leaving office, but emphasized that he has not represented any clients before New York state or city agencies.
Azzopardi also noted that Cuomo frequently recommends former colleagues for corporate roles.
While OKX declined to comment on its relationship with Cuomo, Bloomberg reported that the former governor had also influenced leadership decisions at the company.
Notably, Cuomo advised OKX to appoint longtime associate and former U.S. Attorney Linda Lacewell to the board.
Lacewell, who previously served as superintendent of the New York Department of Financial Services, joined the board in 2024 and was named OKX’s chief legal officer on April 1.
In response to the settlement, OKX has committed to strengthening its compliance framework.
The company announced plans to hire a compliance consultant to help address regulatory concerns raised by the investigation.
“Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies,” said OKX CEO Star Xu in a post on X dated February 24.
We will continue to mature our compliance operations and continue to work closely with global regulators. Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies. I am proud of our company. https://t.co/kZEyuzL9K5
— Star (@star_okx) February 24, 2025
EXPLORE: 10 Best AI Crypto Coins to Invest in 2025
OKX Suspends DeFi Services Amid Media Scrutiny and EU Regulatory Pressure
Last month, OKX temporarily suspended its decentralized finance (DeFi) services, citing intensified media scrutiny and a coordinated attack allegedly involving the North Korean Lazarus Group.
The company stated that while it typically remains focused on innovation, it could not ignore the timing of these accusations, especially as it steps up efforts to combat financial crime.
The move came after increasing competitive pressure and regulatory attention, particularly from the European Union.
OKX’s decision comes as EU regulators investigate the platform over claims of laundering $100 million from the February 2025 Bybit hack. The probe threatens the exchange’s MiCA license, which is essential for operating in Europe under the new crypto regulatory framework.
EXPLORE: Best New Cryptocurrencies to Invest in 2025
Key Takeaways
- OKX crypto exchange hired former New York Governor Andrew Cuomo as a legal advisor during its $505 million U.S. settlement.
- Cuomo influenced internal decisions, including the appointment of OKX’s new chief legal officer.
- OKX faces mounting regulatory pressure in the U.S. and EU, prompting compliance upgrades and service suspensions.
The post OKX Crypto Exchange Hires Former NY Governor Andrew Cuomo Amid $505M Federal Settlement appeared first on 99Bitcoins.
