The Commodity Futures Trading Commission (CFTC) has provided a status report on its lawsuit against Mek Global Limited, PhoenixFin PTE Ltd., Flashdot Limited, and Peken Global Limited, which collectively operate a centralized digital asset exchange under the name KuCoin.

The report, filed with the New York Southern District Court, states that the parties have reached an agreement in principle to resolve the matter. The proposed resolution would fully resolve the claims against the defendants.

The proposed resolution would resolve all claims against Defendant Peken Global Limited, the sole existing operating entity of the KuCoin exchange. Counsel for the defendants has represented that Mek Global Limited and PhoenixFin Pte. Ltd. are dissolved, and that Flashdot Limited (the parent holding company of Peken Global during the relevant period) has no role in KuCoin’s operations.

The proposed resolution would also include a dismissal of all claims against defendants Mek Global, PhoenixFin and Flashdot.

Let’s recall that the CFTC has charged the defendants with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations.

The complaint alleges that KuCoin illegally dealt in off-exchange commodity futures transactions and leveraged, margined, or financed retail commodity transactions; solicited and accepted orders for commodity futures, swaps, and leveraged, margined, or financed retail commodity transactions without registering with the CFTC as a futures commission merchant (FCM); failed to diligently supervise its FCM activities; operated a facility for the trading or processing of swaps without registering with the CFTC as a swap execution facility (SEF) or designated contract market (DCM); and failed to implement an effective customer identification program (CIP).