KuCoin, a cryptocurrency exchange based in Seychelles It was agreed to cease all operations. Paid more than $22 million for settlement in New York Litigation with New York Attorney General It concerns the illegal sale of unregistered securities and products.
The company now reportedly owes New York-based KuCoin users $16.7 million worth of refunds for cryptocurrency transactions and an additional $5.3 million to the Attorney General’s Office, according to legal filings.
KuCoin also acknowledged under the settlement that it operates a cryptocurrency exchange that allows users to buy or sell cryptocurrencies that are “securities or instruments as defined under New York State law.”
While a significant admission, the language falls short of the New York attorney general’s initial goals. filed a lawsuit In March, against KuCoin, the then-NYAG attempted to file a lawsuit against the exchange to simultaneously prove that Ethereum was a security under New York law. This was a bold accusation.
We are building a cryptocurrency platform in our office. @kucoincom Must pay more than $22 million for operating illegally in New York.
KuCoin is also prohibited from doing business in our state.
The Shady cryptocurrency platform must follow the same rules as everyone else or face the consequences. https://t.co/v3sS3eP3XJ
— NY AG James (@NewYorkStateAG) December 12, 2023
“This action marks one of the first times a regulator has argued in court that ETH, one of the largest cryptocurrencies, is a security,” NYAG said. declare In March. “The petition asserts that ETH, like LUNA and UST, is a speculative asset that relies on the efforts of third-party developers to provide profits to ETH holders.”
However, Tuesday’s agreement did not acknowledge that the specific cryptocurrencies offered by KuCoin were securities. part Among the tokens being bought and sold, they are securities or or Goods.
Nonetheless, the concessions KuCoin made to end the lawsuit are significant. As of this writing, internet users with New York IP addresses can no longer access the KuCoin platform. According to NYAG, there were more than 177,000 users of the service in the state.
“Cryptocurrency companies must understand that they must follow the same rules as other financial institutions, or my office will hold them accountable,” New York Attorney General Letitia James said in a statement. “I will continue to take action against any company that brazenly ignores the law and jeopardizes the savings and investments of New Yorkers.”
New York has boasted some of the most restrictive cryptocurrency policies in the country for years. In early 2015, cryptocurrency exchange Kraken left the state in protest against the new policy. Bit License Cryptocurrency registration law established by Kraken blame to It is described as ‘abominable’, ‘cruel’ and ‘unpleasant’.
Last October, California Similar cryptocurrency regulation lawsThis will come into effect from July 2025.
Editor: Andrew Hayward
