KuCoin Settles $22 Million Lawsuit with New York State and Exits New York Market
Cryptocurrency exchange KuCoin has agreed to leave the New York market and pay $22 million to settle a lawsuit filed by New York State Attorney General Letitia James. The lawsuit, filed in March, accused KuCoin of violating state laws, including listing tokens like ETH (Ethereum) that were considered unregistered securities.
The settlement requires KuCoin to pay $5.3 million to the state and reimburse $16.7 million in cryptocurrencies to approximately 177,800 New York investors. Attorney General James emphasized the importance for crypto companies to abide by the same rules as other financial institutions.
KuCoin’s Announcement and Commitment to Compliance
KuCoin CEO Johnny Lyu announced the agreement on X (formerly Twitter), stating that the security of users’ assets remains their top priority. He also urged users to refer to the official KuCoin website for accurate information, anticipating potential rumors circulating.
New York’s Engagement in Cryptocurrency Regulation
New York is one of the most active states in terms of cryptocurrency regulation. The New York Department of Financial Services recently issued guidelines to strengthen how companies list or delist digital currencies. Other crypto companies, such as Bitfinex and Tether, have also faced investigations in the state.
