The Commodity Futures Trading Commission signaled a potential end to its high-profile enforcement action against entities behind the KuCoin cryptocurrency exchange, telling a federal court that the parties have reached an agreement in principle to resolve the dispute.
In a status report filed with the U.S. District Court for the Southern District of New York, the agency said the proposed CFTC Mek Global settlement would fully resolve its claims against Mek Global Limited, PhoenixFin PTE Ltd., Flashdot Limited and Peken Global Limited.
Collectively, those entities operated the centralized digital asset trading platform known as KuCoin.
Resolution Focuses on Operating Entity
According to the filing, the contemplated resolution would settle all claims against Peken Global Limited, described as the sole existing operating entity of the KuCoin exchange.
Defense counsel represented to the court that Mek Global Limited and PhoenixFin PTE Ltd. have been dissolved. Flashdot Limited — identified as the parent holding company of Peken Global during the relevant period — no longer has any operational role in KuCoin’s activities.
As part of the proposed agreement, the CFTC would dismiss all claims against Mek Global, PhoenixFin and Flashdot, effectively narrowing the case to its operational core before closing it.
The filing did not detail financial penalties or compliance undertakings, but it indicated that the deal would fully resolve the litigation if finalized.
