KuCoin has agreed to a settlement worth USD $22
million with the state of New York, and to halt services for users in the region,
according to an order filed in the Supreme Court today (Tuesday). The crypto
exchange was charged for offering, selling, and purchasing cryptocurrencies as
securities and commodities, breaching New York’s laws.
KuCoin has acknowledged the allegations, agreeing to
a payment of $5.3 million and specific obligations. These include terminating
access to its services for New York users within a stipulated timeframe,
ceasing account creation for NY residents, and restricting existing NY accounts
solely for withdrawal purposes.
Additionally, KuCoin has committed to
returning current account balances held by New York customers, valued at
approximately $16.7 million in fiat and cryptocurrencies. This restitution
process involves facilitating withdrawals and transferring remaining balances
to a third-party fund administrator for subsequent return to affected New York
customers.
KuCoin’s compliance with the agreement involves a commitment
to cease operations for New York users, ensuring strict adherence to the
consent order’s terms and conditions.
Cryptocurrency exchange KuCoin has agreed to pay $22 million to settle a lawsuit brought by the New York Attorney General’s Office. Following the settlement, KuCoin will exit the New York market. Previously in March, NYAG accused KuCoin of operating without a license and…
— Wu Blockchain (@WuBlockchain) December 12, 2023
In March, New York State Attorney General Letitia James
filed a lawsuit against KuCoin, alleging the exchange’s unlawful operations
within the state. The lawsuit marks a pivotal moment as it’s the first time a
regulatory body has labeled Ether, alongside other cryptocurrencies, as a
security under the Martin Act.
The lawsuit also accuses KuCoin of offering unregistered
securities through its KuCoin Earn product, a lending and staking service. The
case was substantiated by the NYAG’s office, which interacted with the platform
using a New York IP address, conducting transactions and demonstrating the
platform’s operational engagement.
KuCoin Faces Mounting Regulatory Challenges
Last year, South Korea’s Financial Intelligence Unit (FIU)
intensified its crackdown on unauthorized overseas crypto exchanges,
scrutinizing 16 platforms, including KuCoin. These platforms are allegedly
operating in the country without complying with local regulatory guidelines.
The exchange allegedly failed to adhere to the country’s
Financial Information Act. The FIU has urged the Korea Communications
Commission to block access to the websites and mobile applications of this
platform.
KuCoin has agreed to a settlement worth USD $22
million with the state of New York, and to halt services for users in the region,
according to an order filed in the Supreme Court today (Tuesday). The crypto
exchange was charged for offering, selling, and purchasing cryptocurrencies as
securities and commodities, breaching New York’s laws.
KuCoin has acknowledged the allegations, agreeing to
a payment of $5.3 million and specific obligations. These include terminating
access to its services for New York users within a stipulated timeframe,
ceasing account creation for NY residents, and restricting existing NY accounts
solely for withdrawal purposes.
Additionally, KuCoin has committed to
returning current account balances held by New York customers, valued at
approximately $16.7 million in fiat and cryptocurrencies. This restitution
process involves facilitating withdrawals and transferring remaining balances
to a third-party fund administrator for subsequent return to affected New York
customers.
KuCoin’s compliance with the agreement involves a commitment
to cease operations for New York users, ensuring strict adherence to the
consent order’s terms and conditions.
Cryptocurrency exchange KuCoin has agreed to pay $22 million to settle a lawsuit brought by the New York Attorney General’s Office. Following the settlement, KuCoin will exit the New York market. Previously in March, NYAG accused KuCoin of operating without a license and…
— Wu Blockchain (@WuBlockchain) December 12, 2023
In March, New York State Attorney General Letitia James
filed a lawsuit against KuCoin, alleging the exchange’s unlawful operations
within the state. The lawsuit marks a pivotal moment as it’s the first time a
regulatory body has labeled Ether, alongside other cryptocurrencies, as a
security under the Martin Act.
The lawsuit also accuses KuCoin of offering unregistered
securities through its KuCoin Earn product, a lending and staking service. The
case was substantiated by the NYAG’s office, which interacted with the platform
using a New York IP address, conducting transactions and demonstrating the
platform’s operational engagement.
KuCoin Faces Mounting Regulatory Challenges
Last year, South Korea’s Financial Intelligence Unit (FIU)
intensified its crackdown on unauthorized overseas crypto exchanges,
scrutinizing 16 platforms, including KuCoin. These platforms are allegedly
operating in the country without complying with local regulatory guidelines.
The exchange allegedly failed to adhere to the country’s
Financial Information Act. The FIU has urged the Korea Communications
Commission to block access to the websites and mobile applications of this
platform.