KuCoin paid $22 million to settle a cryptocurrency lawsuit, blocked users and exited the New York market.
Posted: December 12, 2023 10:34 AM Updated: December 12, 2023 10:34 AM
Correction and fact check date: December 12, 2023, 10:34 AM
briefly
KuCoin agreed to pay $22 million to settle a cryptocurrency lawsuit, repay $16.7 million in cryptocurrency and exit the New York market.
Cryptocurrency exchange KuCoin has agreed to block New York users and pledged to pay $22 million to settle a lawsuit filed by the state. The move is consistent with the state’s efforts to regulate digital asset companies.
The $22 million paid by KuCoin consists of a $5.3 million fine to the state and repayment of $16.7 million worth of cryptocurrency to 177,800 New York investors.
The legal action against KuCoin began earlier this year when the Seychelles-based exchange was accused of neglecting to register with the country before facilitating cryptocurrency trading.
As part of the terms of the settlement, KuCoin committed to cease trading securities and commodities in New York. The resolution is consistent with heightened regulatory efforts by U.S. authorities and law enforcement agencies targeting issues such as fraud, money laundering, and insufficient investor protection in the cryptocurrency sector.
According to data from CoinMarketCap, KuCoin currently ranks lower than Binance, Coinbase, and Kraken among cryptocurrency spot exchanges in terms of market performance when considering factors such as traffic, liquidity, and trading volume.
US takes steps to strengthen cryptocurrency supervision
In response to the evolving landscape of the digital asset industry, the United States has taken decisive steps to strengthen regulatory oversight and tighten control over cryptocurrencies.
In recent proceedings, U.S. Senator Elizabeth Warren announced that she has co-sponsored the “Digital Asset Anti-Money Laundering Act” along with five other senators. The purpose of the bill is to address potential loopholes by linking the digital asset ecosystem to the anti-money laundering and counter financing of terrorism framework.
KuCoin’s commitment to delist securities and commodities trading in New York is consistent with broader regulatory efforts at the state level to address issues such as fraud and money laundering, and demonstrates a national push for stricter oversight of the evolving digital asset landscape.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles