KuCoin, a major global cryptocurrency exchange, has settled a lawsuit with the state of New York by agreeing to restrict access for users in the state and paying a $22 million settlement. This resolution stems from allegations made by Attorney General Letitia James, who accused KuCoin of operating in New York without proper registration, a move that aligns with the state’s efforts to regulate digital assets firms.
In her statement, James emphasized that cryptocurrency entities must adhere to financial regulations similar to traditional financial institutions. The settlement also mandates KuCoin to cease trading securities and commodities in New York. This action is part of a broader crackdown by U.S. regulators on fraudulent practices, money laundering, and inadequate protections for crypto investors.
Previously, James’ office had legal actions against Genesis Global, Digitial Currency Group, and Gemini, alleging defrauding investors of over $1 billion. CoinEx, another cryptocurrency exchange, reached a $1.8 million settlement in June for illegal operations in New York due to a lack of state registration.
Recent legal developments in the crypto space included FTX founder Sam Bankman-Fried’s conviction for embezzlement and the founder of Binance pleading guilty to violating U.S. anti-money laundering laws. KuCoin’s settlement involves a $5.3 million payment to the state and the reimbursement of $16.7 million in cryptocurrency to nearly 178,000 New York investors.
In rankings by CoinMarketCap, KuCoin falls behind Binance, Coinbase, and Kraken in various aspects like trading volumes, liquidity, and user traffic among cryptocurrency spot exchanges.
