The formula for KE you give only applies to Newtonian mechanics. As you aproach the speed of light you find that space and time do not behanve the same and so you definition of velocity has to change to make any sense. The result is that relativistic kinetic energy has the formulaL
KE = gamma*mc^2 - mc^2
where m is the mass, c the speed of light and gamma=1/sqrt(1-v^2/c^2) where v is your classical newtonian velocity. Hence as v tends towards c, gamma tends to infiinity and so there is no known upper bound on kinetic energy.
If you have any doubts about this then just remember that the LHC accelerates protons to 7 TeV. If your classical formula held it would be impossible to accelerate them to an energy greater than about 500 MeV, i.e. we have exceeded that limit by a factor of 14,000.