The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have taken significant legal actions against the cryptocurrency exchange KuCoin. The DOJ alleges that KuCoin facilitated the transfer of approximately $5 billion in suspicious and criminal funds, including receiving $3.2 million from the prohibited service Tornado Cash, and corrected earlier statements to clarify that KuCoin received $5 billion and sent $4 billion of these funds. The CFTC has charged KuCoin with operating an illegal digital asset derivatives exchange, citing that the platform failed to register in the U.S. despite having 20 to 50 percent of its customer base there. In response, KuCoin has asserted that its operations are continuing normally and that user assets are secure, with the platform actively investigating the charges through legal counsel. This series of legal challenges comes amid a broader regulatory scrutiny of the cryptocurrency industry, with significant withdrawals observed from KuCoin following the indictments. On-chain data indicates a substantial outflow of funds from the platform, with reports of over $1.78 billion withdrawn, representing a 15% drop in exchange assets. The legal developments have sparked discussions regarding the classification of digital assets, with the CFTC reaffirming its stance that cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are commodities.