KuCoin will no longer serve the New York market, as part of its settlement deal with the NYAG.
Major crypto exchange KuCoin has reportedly settled with New York authorities to stop offering its services in the local market, along with a payment of $22 million.
The settlement deal comes months after the New York Attorney General (NYAG) sued KuCoin for selling unregistered securities to users in the state.
KuCoin Leaves New York
According to a report by Reuters, the $22 million payment comprises $5.3 million to the state of New York and $16.7 million worth of crypto refunded to nearly 180,000 NY investors.
Commenting on the latest development, NYAG Letitia James said:
“Crypto companies should understand that they must play by the same rules as other financial institutions.”
KuCoin CEO Johnny Lyu also announced the settlement on X, stating that affected users should expect an email or SMS in the next few days.
“Under our agreement, users required to retire from KuCoin will receive an email or SMS in about 10 days and onwards. If you don’t receive either of these, you’re alright. Rest assured – your asset security is always guaranteed and remains our top priority during this process.”
In March 2023, James brought a lawsuit against KuCoin, alleging that the crypto exchange sold Ether (ETH), the second-largest cryptocurrency by market capitalization, along with Terra (LUNA) and TerraUSD (UST) on its platform.
The lawsuit labeled the tokens as securities and commodities, with the attorney general stating that KuCoin listed and sold them without registering with the necessary authorities.
New York Maintains Tough Oversight on Crypto Industry
Attorney General Letitia James continues to go after crypto businesses believed to be violating the laws of the state. Apart from KuCoin, other cryptocurrency exchanges have also settled with the NYAG office.
As previously reported by CryptoPotato, CoinEx, which was sued for illegal operations in February 2023, agreed to pay nearly $2 million in refunds and penalties. The office of the NYAG also banned CoinEx from operating in the state. Tether and Bitfinex also previously reached a settlement deal with the NYAG after a lengthy legal battle.
Recently, James took action against Genesis, Gemini, and Digital Currency Group (DCG), alleging that the companies defrauded over 230,000 investors of more than $1 billion.