A cryptocurrency exchange reportedly engaged former New York Governor Andrew Cuomo to provide guidance regarding the federal investigation that led the company to admit to various offenses and agree to pay $505 million in fines and penalties.
Cuomo, who is a practicing attorney in New York, offered legal counsel to the exchange following his resignation in August 2021, according to sources familiar with the situation. He maintained regular communication with company executives to advise them on how to navigate the criminal inquiry.
The exchange admitted to running an unlicensed money-transmitting operation in breach of U.S. Anti-Money Laundering laws on February 24, resulting in $84 million in penalties and the forfeiture of $421 million in fees primarily collected from institutional clients.
These violations spanned from 2018 to 2024, even though the exchange had implemented an official policy since 2017 prohibiting transactions by U.S. residents, as noted by the Department of Justice.
A representative for Cuomo mentioned that he has been offering private legal services to individuals and businesses on several matters since stepping down as governor. The spokesperson added that Cuomo has not represented clients before any New York city or state agencies and frequently recommends former colleagues for positions.
The exchange did not provide any comments regarding its collaborations with external firms.
Cuomo also recommended key appointments at the exchange
Cuomo, who is currently campaigning for mayor of New York City, advised the exchange to appoint his acquaintance Linda Lacewell, a former U.S. Attorney, to its board of directors. Lacewell, who previously served as the superintendent of the New York Department of Financial Services, joined the board in 2024 and was appointed as the new chief legal officer on April 1, as stated in a recent announcement.
Source: Linda Lacewell
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After concluding the investigation, the exchange announced plans to engage a compliance consultant to address the issues related to the federal inquiry and enhance its regulatory compliance framework.
“We aim to make our platform the benchmark of global compliance across various markets and regulatory authorities,” the CEO expressed in a post on February 24.
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