The Commodity Futures Trading Commission (CFTC) has provided an update on its lawsuit against KuCoin operators.

On December 1, 2025, the CFTC filed a status report with the New York Southern District Court.

The regulator explains that the parties have recently reengaged in discussions in an effort to reach a resolution of this matter; however, the shutdown and its effects on Commission processes delayed such discussions.

As a result, the parties are now seeking leave from the Court to file an updated status report within 60 days, by which time the parties will have had an opportunity to engage in further discussions and can provide a more substantive update.

In March 2024, the CFTC filed a civil enforcement action in the U.S. District Court for the Southern District of New York charging Mek Global Limited, PhoenixFin PTE Ltd., Flashdot Limited, and Peken Global Limited, which collectively operate a centralized digital asset exchange under the name KuCoin, with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations.

The complaint charges 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).