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News

KuCoin New York Lawsuit Settled With $22 Million Payment

December 12, 2023 - Around 2 mins mins to read
Key Points:
  • The KuCoin New York lawsuit has been settled with an agreement to pay $22 million over allegations of operating without a license.
  • The settlement underscores increased regulatory scrutiny in the US.
  • New York continues its legal campaign against industry players.
In a landmark settlement, cryptocurrency exchange giant KuCoin has agreed to pay $22 million and cease operations in the New York market, resolving a lawsuit filed by the state’s Attorney General, Letitia James.

KuCoin New York Lawsuit Settled With $22 Million Payment

KuCoin New York Lawsuit Has Been Resolved With $22M Settlement

The KuCoin New York lawsuit, initiated in March, accused KuCoin of facilitating cryptocurrency transactions without proper registration, violating securities laws, and listing unregistered securities such as ETH, Luna, and TerraUSD.

According to Reuters, under the terms of the agreement reached on December 12, KuCoin will halt its securities and commodities trading services in New York. Attorney General Letitia James emphasized: “Crypto companies should understand that they must play by the same rules as other financial institutions, and my office will hold them accountable when they don’t.”

New York’s Actions Shape Crypto Compliance Landscape

This development comes amid increased scrutiny from U.S. regulators and law enforcement agencies targeting the cryptocurrency sector for concerns related to fraud, money laundering, and inadequate investor protections.

The state of New York has been particularly active, with Attorney General James filing a civil lawsuit against major industry players in October. As part of the settlement for the KuCoin New York lawsuit, the exchange will not only pay $22 million but also make an additional payment of $5.3 million to state officials.

Furthermore, the cryptocurrency exchange will return assets worth $16.7 million to 177,800 New York investors. This resolution underscores the state’s commitment to enforcing regulations in the rapidly evolving crypto landscape.

Recent legal actions against industry leaders, including FTX founder Sam Bankman-Fried and Binance’s founder Changpeng Zhao, highlight the growing pressure on cryptocurrency platforms to adhere to compliance standards.

The New York Department of Financial Services has also implemented stricter rules for listing and delisting assets on authorized exchanges, reflecting a broader trend of regulatory tightening in the crypto space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Kucoin

Lawsuit

Letitia James

new york

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

KuCoin New York Lawsuit Settled With $22 Million Payment

Key Points:
  • The KuCoin New York lawsuit has been settled with an agreement to pay $22 million over allegations of operating without a license.
  • The settlement underscores increased regulatory scrutiny in the US.
  • New York continues its legal campaign against industry players.
In a landmark settlement, cryptocurrency exchange giant KuCoin has agreed to pay $22 million and cease operations in the New York market, resolving a lawsuit filed by the state’s Attorney General, Letitia James.

KuCoin New York Lawsuit Settled With $22 Million Payment

KuCoin New York Lawsuit Has Been Resolved With $22M Settlement

The KuCoin New York lawsuit, initiated in March, accused KuCoin of facilitating cryptocurrency transactions without proper registration, violating securities laws, and listing unregistered securities such as ETH, Luna, and TerraUSD.

According to Reuters, under the terms of the agreement reached on December 12, KuCoin will halt its securities and commodities trading services in New York. Attorney General Letitia James emphasized: “Crypto companies should understand that they must play by the same rules as other financial institutions, and my office will hold them accountable when they don’t.”

New York’s Actions Shape Crypto Compliance Landscape

This development comes amid increased scrutiny from U.S. regulators and law enforcement agencies targeting the cryptocurrency sector for concerns related to fraud, money laundering, and inadequate investor protections.

The state of New York has been particularly active, with Attorney General James filing a civil lawsuit against major industry players in October. As part of the settlement for the KuCoin New York lawsuit, the exchange will not only pay $22 million but also make an additional payment of $5.3 million to state officials.

Furthermore, the cryptocurrency exchange will return assets worth $16.7 million to 177,800 New York investors. This resolution underscores the state’s commitment to enforcing regulations in the rapidly evolving crypto landscape.

Recent legal actions against industry leaders, including FTX founder Sam Bankman-Fried and Binance’s founder Changpeng Zhao, highlight the growing pressure on cryptocurrency platforms to adhere to compliance standards.

The New York Department of Financial Services has also implemented stricter rules for listing and delisting assets on authorized exchanges, reflecting a broader trend of regulatory tightening in the crypto space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.