Ex-Governor Cuomo’s $505M Crypto Fiasco: What Really Happened?

In a twist that could only happen in the wild world of cryptocurrency, OKX, a Seychelles-based exchange, reportedly enlisted the help of none other than former New York Governor Andrew Cuomo to navigate a federal probe. The result? A whopping $505 million in fines and penalties. Because, of course, when you’re in hot water, who better to call than a guy who resigned in disgrace? 🤷‍♂️

According to Bloomberg, Cuomo, who is technically still a registered attorney in New York (because why not?), started advising OKX sometime after August 2021. That’s right, just months after he stepped down as governor. Because nothing says “fresh start” like diving headfirst into a crypto scandal. 🚀

“He spoke with company executives regularly and counseled them on how to respond to the criminal investigation,” Bloomberg reported. Translation: Cuomo was basically the legal equivalent of a life coach for a company that was about to cough up half a billion dollars. 💸

On February 24, OKX pled guilty to operating an unlicensed money-transmitting business, violating U.S. Anti-Money Laundering laws. The firm agreed to pay $84 million in penalties and forfeit $421 million in fees earned from institutional clients. Because nothing screams “legitimate business” like having to forfeit nearly half a billion dollars. 🏦

Here’s the kicker: these violations happened from 2018 to 2024, despite OKX having a policy since 2017 that supposedly prevented U.S. persons from transacting on its platform. So, either their policy was about as effective as a screen door on a submarine, or they just didn’t care. 🚪🌊

Cuomo’s spokesperson, Rich Azzopardi, told Bloomberg that the former governor has been providing private legal services since his resignation. “He has not represented clients before a New York city or state agency and routinely recommends former colleagues for positions,” Azzopardi added. Because networking is everything, even in the world of crypto chaos. 🤝

As for OKX, they reportedly declined to comment on their relationships with outside firms. Which, let’s be honest, is probably for the best. 🚫🗣️

Cuomo’s Executive Influence: Because Why Stop at Legal Advice?

But wait, there’s more! Cuomo, who is now running for mayor of New York City (because of course he is), also advised OKX to appoint his friend, former U.S. Attorney Linda Lacewell, to the company’s board of directors. Lacewell, who previously served as superintendent of the New York Department of Financial Services, was added to the board in 2024 and named OKX’s new chief legal officer on April 1. Because nothing says “April Fools” like appointing a new legal officer after a $505 million scandal. 🎉

After the investigation concluded, OKX announced it would seek out a compliance consultant to fix the issues and strengthen its regulatory compliance program. “Our vision is to make OKX the gold standard of global compliance at scale across different markets and their respective regulatory bodies,” OKX CEO Star Xu said in a February 24 X post. Because nothing says “gold standard” like a $505 million fine. 🥇

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2025-04-03 03:12