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.
#KuCoin #Settles #York #Charges #22M
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