OKX Crypto Trading platform Engages Ex-NY Governor Andrew Cuomo Following $505M Federal Settlement

The cryptocurrency trading protocol OKX has brought on board former New York Governor Andrew Cuomo as a legal consultant as it navigates a $505 million federal settlement with U.S. officials, based on a Bloomberg report released on April 2.

Cuomo, who is a licensed attorney in New York, reportedly began advising OKX after he stepped down as governor in August 2021.

He collaborated closely with executives at the company, offering guidance on how to manage the federal probe that led to OKX admitting guilt for running an unlicensed money transmission service in breach of U.S. anti-money laundering legislation.

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OKX Agrees to $505 Million Settlement Over Unlicensed Activities

On February 24, the Seychelles-based trading protocol consented to pay $84 million in civil fines and forfeit $421 million in fees primarily collected from institutional clients.

The U.S. Department of Justice indicated that these infractions occurred from 2018 to 2024, despite the exchange’s official stance since 2017 prohibiting U.S. users from trading on its network.

Rich Azzopardi, Cuomo’s spokesperson, confirmed that Cuomo has been rendering legal services to various corporations and individuals since leaving office, but clarified that he has not represented any clients in front of New York state or city agencies.

Azzopardi also mentioned that Cuomo often suggests former colleagues for corporate positions.

While OKX opted not to comment on its association with Cuomo, Bloomberg disclosed that the former governor had a hand in influencing leadership choices within the company.

Importantly, Cuomo advised OKX to name longtime associate and former U.S. Attorney Linda Lacewell to its board.

Lacewell, previously the superintendent of the New York Department of Financial Services, joined the board in 2024 and was appointed OKX’s chief legal officer on April 1.

In light of the settlement, OKX is dedicated to enhancing its compliance framework.

The company plans to engage a compliance consultant to address the regulatory issues raised by the investigation.

“Our objective is to position OKX as the benchmark of global crypto law at scale across various markets and their respective regulatory bodies,” stated OKX CEO Star Xu in a post on X dated February 24.

We will continue to mature our regulation 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

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OKX Halts Decentralized finance Services Amid Media Attention and EU Regulatory Challenges

Recently, OKX momentarily ceased its decentralized finance (DeFi) operations, citing increased media scrutiny and a coordinated attack supposedly involving the North Korean Lazarus Group.

The company indicated that while it generally prioritizes innovation, it could not overlook the timing of these allegations, particularly as it intensifies efforts to fight financial crime.

This pause followed mounting competitive pressure and regulatory focus, especially from the EU.

The decision by OKX comes as EU regulators investigate the protocol regarding allegations of laundering $100 million from the February 2025 Bybit breach. The investigation poses a risk to the exchange’s MiCA license, which is crucial for its operations in Europe under the new crypto regulatory framework.

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The article OKX Crypto Trading protocol Hires Former NY Governor Andrew Cuomo Amid $505M Federal Settlement first appeared on 99Bitcoins.