- KuCoin has settled a $22 million lawsuit with New York state regulators over alleged commodity and securities violations.
- New York Attorney General Letitia James is stepping up efforts against cryptocurrency companies and pursuing legal action to regulate and protect investors in the state.
KuCoina prominent Seychelles-based digital asset exchange, has reached a pivotal agreement with New York state regulators, marking the latest development in the state’s efforts to tighten controls on non-compliant cryptocurrency service providers.
Under the settlement, KuCoin must pay $22 million in damages and fines to settle a lawsuit filed by New York authorities alleging violations related to commodities and securities. Among the key components of the settlement: $5.3 million will be paid directly to the state in fines, while the remaining $16.7 million is earmarked to repay approximately 177,800 resident investors. Additionally, KuCoin has committed to completely cease operations in the state.
Despite regulatory pressure and a significant settlement, KuCoin’s native token, KCS, has seen a surge, trading above $13.30 at the time of reporting. The token’s notable gains were highlighted by its emergence as one of the top performers on December 12.
New York cracks down on KuCoin and the cryptocurrency industry
New York Attorney General Letitia James took legal action against KuCoin in March. KuCoin operated an unregistered commodities and securities platform that allowed New Yorkers to engage in cryptocurrency trading without obtaining the necessary regulatory licenses, she alleged.
This lawsuit raises further questions about this. Ethereum (ETH)Identify it as collateral within the realm of legal proceedings.
The legal showdown with KuCoin is one of several lawsuits the Attorney General’s Office has taken against cryptocurrency companies suspected of operating illegally in New York. These actions are consistent with the state’s comprehensive cryptocurrency regulation, protection, transparency, and oversight laws.
Previously, Attorney General James filed a legal lawsuit against former CEO Alex Mashinsky. celsius network, and his company was accused of fraud. CoinEx was banned from doing business in New York and paid a $1.7 million fine to settle the charges.
Additionally, in October 2023, the Attorney General’s Office filed a $1 billion cryptocurrency fraud lawsuit against industry players Gemini, Genesis, and Digital Money Group (DCG). DCG CEO Barry Silbert dismissed the lawsuit as “baseless.”
Letitia James and her team have consistently emphasized the need for standardized cryptocurrency regulation in the United States. They advocate for policies that ensure the safe operation of cryptocurrency businesses while protecting the interests of digital asset users.