OKX, the cryptocurrency exchange, sought counsel from former New York Governor Andrew Cuomo amidst a federal probe that concluded with the firm pleading guilty and agreeing to a $505 million settlement in fines and penalties.
Cuomo, a registered attorney in New York, provided legal advice to OKX following his resignation as governor in August 2021, according to a Bloomberg report on April 2. He reportedly engaged with OKX executives regularly, offering guidance on their response to the criminal investigation.
On February 24, the Seychelles-based company admitted to operating an unlicensed money-transmitting business, violating U.S. Anti-Money Laundering laws. This resulted in an $84 million penalty and the forfeiture of $421 million in fees, primarily from institutional clients.
The Department of Justice noted that these violations transpired between 2018 and 2024, despite OKX having a policy since 2017 that officially prohibited U.S. persons from transacting on its exchange.
Rich Azzopardi, a spokesperson for Cuomo, stated to Bloomberg that Cuomo has been offering private legal services to individuals and corporations since leaving his post as governor. He added that Cuomo has not represented clients before New York city or state agencies and frequently recommends former colleagues for positions.
OKX has not commented on its relationships with outside firms.
Bloomberg also reports that Cuomo influenced OKX to appoint Linda Lacewell, a former superintendent of the New York Department of Financial Services and a friend of Cuomo, to its board of directors.
Lacewell was appointed to the board in 2024 and became OKX’s chief legal officer on April 1, according to a company statement.
Following the conclusion of the investigation, OKX announced plans to engage a compliance consultant to address the issues identified during the federal probe and strengthen its regulatory compliance program.
OKX CEO Star Xu stated in a February 24 X post, “Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies.”