KuCoin Settles Lawsuit and Exits New York Market
Crypto exchange KuCoin has reached a settlement with the state of New York, agreeing to pay $22 million to resolve a lawsuit filed by the New York Attorney General Letitia James earlier this year. The lawsuit accused KuCoin of violating state laws by listing unregistered securities, including ether, on its platform. As part of the settlement, KuCoin will pay $5.3 million to the state and refund $16.7 million worth of cryptocurrency to 177,800 New York investors.
New York’s Crypto Rules and Other Probes
New York has been actively writing new regulations for the crypto industry. Last month, the New York Department of Financial Services issued guidance aimed at strengthening the listing and delisting processes for digital assets. Other crypto firms, such as Bitfinex and Tether, have also faced investigations in New York. In 2021, they settled with the attorney general’s office for $18.5 million after a two-year dispute.
Hot Take: Upholding Regulation in the Crypto Industry
The settlement between KuCoin and the state of New York highlights the need for crypto companies to adhere to financial regulations. The state’s attorney general emphasized that all financial institutions must play by the same rules. New York’s active pursuit of crypto regulation sets an example for other jurisdictions and aims to protect investors from potential fraud or misconduct in the industry.
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