OKX parts ways with CLO Beugelmans after $500M settlement with U.S. DOJ

According to his LinkedIn account, OKX’s chief legal officer Mauricio Beugelmans has parted ways with the cryptocurrency exchange. While with the company, Beugelmans played a significant role in shaping OKX’s global compliance policy. 

He wrote on his LinkedIn profile that his tenure lasted three years and eight months at the exchange, from August 2021 to March 2025.

Beugelman’s exit comes weeks after OKX was forced to pay over $500 million in penalties and forfeited fees in a settlement. According to reports, a source close to the matter has said his exit was related to the settlement.

OKcoin, the American division of OKX, has also received a subpoena issued by the Commodity Futures Trading Commission (CFTC) on February 24 last year. The subpoena referred to “certain persons engaged in fraud and other unlawful conduct with respect to digital asset transactions.”

OKX was reportedly on the wrong side of the law for years

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced in February that Aux Cayes Fintech Co. Ltd, a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business.

The case was assigned to the U.S. District Judge Katherine Polk Failla, who presided over the guilty plea and sentencing. According to Acting U.S. Attorney Matthew Podolsky, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing the country’s financial system for more than seven years.

As a result, OKX became a tool that facilitated over five billion dollars worth of suspicious transactions and criminal proceeds. FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures.”

Notably, OKX had to shut down its DEX aggregator service after North Korea-linked hackers used it to launder about $100 million of the funds stolen from Bybit. The episode also sparked scrutiny from European regulators.

More details about OKX’s settlement with the DOJ

Aux Cayes FinTech Co. Ltd. (the “Company”), resolved the Department of Justice investigation by acknowledging that it had not obtained a license to operate as a money transmitter.

In the press release it shared on its website, OKX also admitted that as a result of legacy compliance gaps, certain U.S. customers gained access to trading on the company’s global platform in the past.

It said the U.S. customers involved are no longer on its platform, and their activity amounted to a small percentage of “the Company’s” worldwide customer population.

The press release also claimed there were no allegations of customer harm, no charges levied against any employees and no government-appointed monitor was part of the settlement.

We’re thrilled to share that Linda Lacewell previously regulator / Head of NYDFS, has recently stepped into the role as Chief Legal Officer.

We are excited about Linda's wealth of experience to advance OKX's regulatory footprint. Read more: https://t.co/VPFPYuixoJ pic.twitter.com/uaYnPqOUGi

— OKX (@okx) March 31, 2025

The Company eventually paid a penalty of $84 million and agreed to forfeit fees earned from these U.S. customers over the period, which was approximately $421 million, a majority of which came from a few institutional clients.

Acknowledging the loopholes that made trading possible for those U.S. citizens back then has also pushed the Company to voluntarily retain a compliance consultant to help solve the issues and enhance its overall compliance program. There are also plans to continue with this consultant into the future.

It is on record that the Company cooperated with the DOJ and appreciates their collaboration on this resolution.

“We are pleased with the resolution and look forward to implementing our global expansion plans and maintaining our status as the most trusted and technology-led crypto exchange in the world,” the statement from OKX reads.

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