KuCoin, a significant crypto exchange, has agreed to a settlement with New York State, agreeing to pay $22 million and halt services for users in the state, as per filings in the New York County Supreme Court on Tuesday. As part of this resolution, KuCoin will reimburse around $16.77 million to its New York customers and provide an extra $5.3 million to the State’s Attorney General. The charges revolve around allegations that KuCoin breached securities laws by offering tokens considered as securities without proper registration with the attorney general’s office, prompting legal action.
This lawsuit, spearheaded by Attorney General Letitia James in March, notably made the assertion in court that Ethereum, the second-largest cryptocurrency, should be categorized as a security, marking a significant regulatory move.
KuCoin’s CEO, Johnny Lyu, commented on the settlement, stating, “I’m sharing news about our latest compliance action. @kucoincom has settled with the New York Attorney General (NYAG), affirming our commitment to compliant operations.”
According to court records, KuCoin is obliged to cease service access and close relevant accounts for New York-based users within 120 days of the order’s effective date.