KuCoin Exits New York After Resolving Attorney General's Lawsuit for $22 Million Settlement
In an effort to resolve a lawsuit accusing the Seychelles-based crypto exchange KuCoin of failing to register as a securities and commodities broker-dealer, the platform has agreed to cease its operations in New York.
In a recent announcement, the office of New York Attorney General Letitia James discloses that KuCoin will be obligated to pay a penalty of $5.3 million to the state, along with providing refunds totaling more than $16.7 million.
As part of the settlement, the exchange is prohibited from engaging in trading securities and commodities within New York and from establishing new accounts for residents of the state. Existing KuCoin customers in New York will retain the ability to withdraw their assets from the platform.
Letitia James emphasizes, "Cryptocurrency companies must adhere to the same regulatory standards as traditional financial institutions, and my office will hold them accountable when they fail to do so. This agreement ensures that every New Yorker who invested in KuCoin can recover their funds and prevents KuCoin from jeopardizing the investments of other New York residents."
KuCoin CEO Johnny Lyu reassures affected customers of their asset safety, stating, "Under our agreement, users required to cease using KuCoin will receive notifications via email or SMS within approximately 10 days. If you don't receive either of these notifications, rest assured that your asset security remains our utmost priority during this process, and your assets are secure."
Dec 15, 2023
