Andrew Cuomo advised OKX during $505M federal probe

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Grafa2025/04/03 10:00

By:Liezl Gambe

Former New York Governor Andrew Cuomo reportedly provided legal counsel to cryptocurrency exchange OKX during a federal investigation into the company’s violations of U.S. Anti-Money Laundering (AML) laws.

According to Bloomberg, Cuomo began advising OKX after stepping down as governor in August 2021, helping the Seychelles-based firm navigate the criminal probe.

The investigation concluded with OKX pleading guilty on February 24, 2025, to operating an unlicensed money-transmitting business.

The company agreed to pay $505 million in penalties, including $84 million in fines and the forfeiture of $421 million in fees earned from institutional clients between 2018 and 2024.

Despite having policies prohibiting U.S. users since 2017, the Department of Justice found that OKX failed to prevent such transactions.

Cuomo, a registered New York attorney, reportedly engaged regularly with OKX executives, offering guidance on how to respond to the investigation.

His spokesperson, Rich Azzopardi, confirmed that Cuomo has been providing private legal services to corporations and individuals since leaving office but emphasised that he has not represented clients before New York state or city agencies.

In addition to legal advice, Cuomo reportedly influenced executive appointments at OKX.

Bloomberg reported that he recommended Linda Lacewell, a former superintendent of the New York Department of Financial Services and a close associate, for a leadership role at the company.

Lacewell joined OKX’s board in 2024 and was named chief legal officer on April 1, 2025.

Following the probe, OKX pledged to improve its compliance measures by hiring a consultant and enhancing its regulatory framework.

CEO Star Xu stated that the company aims to become “the gold standard of global compliance” across various markets.

The case underscores ongoing scrutiny of cryptocurrency exchanges by U.S. regulators, particularly concerning AML compliance and unlicensed operations.

As crypto firms seek to align with evolving regulations, high-profile advisors like Cuomo may play a pivotal role in shaping their strategies for navigating legal challenges.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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