New York Investors To Receive $16.7 Million In KuCoin Settlement
KuCoin, one of the leading cryptocurrency exchanges, has reached a settlement of $22 million to resolve a lawsuit brought against it by the state of New York. As part of the settlement terms, KuCoin will refund approximately 177,800 New York investors a total of $16.7 million. The exchange will also pay a $5.3 million fine to the state.
The lawsuit alleged that KuCoin falsely presented itself as a cryptocurrency exchange while failing to register as a securities and commodities broker-dealer. New York Attorney General Letitia James emphasized the risks posed by unregistered offshore crypto platforms to investors and consumers.
NYAG Pursues Crypto Companies?
This legal action against KuCoin follows similar cases brought by Attorney General Letitia James against CoinEx and Nexo Inc. These lawsuits have sparked debates about which crypto assets regulators consider as securities and subject to existing rules and laws.
Attorney General Letitia James has also filed a lawsuit against Alex Mashinsky, former CEO of Celsius Network, for allegedly defrauding investors. Additionally, New York secured a $1 million settlement with BlockFi Lending LLC for offering unregistered securities.
KuCoin Must Cease Trading in New York
As part of the settlement, KuCoin must take measures to prevent New Yorkers from accessing its platform. The exchange is required to cooperate with US law enforcement by promptly responding to information requests and freezing assets when necessary.
Source: Bloomberg
Hot Take: New York Cracks Down on Unregistered Crypto Platforms
The settlement between KuCoin and the state of New York highlights the regulatory scrutiny faced by unregistered crypto platforms. New York Attorney General Letitia James continues to take action against companies that fail to comply with securities and commodities laws.
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