KuCoin Exits New York Market Following Legal Settlement
KuCoin, a major player in the global cryptocurrency exchange market, has agreed to a settlement that includes exiting the New York market and paying $22 million. This move comes as a response to a lawsuit filed by New York’s Attorney General Letitia James.
Lawsuit Allegations and Settlement Terms
The lawsuit, initiated in March against the Seychelles-based KuCoin, accused the platform of operating without proper registration in New York state. The settlement terms require KuCoin to cease trading securities and commodities in New York.
Attorney General’s Stance on Crypto Companies
Attorney General James emphasized the need for cryptocurrency companies to adhere to the same regulations as other financial institutions. This settlement aligns with her office’s ongoing efforts to regulate and monitor the digital assets sector.
Broader Regulatory Actions in the Crypto Space
This development is part of a broader crackdown by U.S. regulators and law enforcement agencies on issues like fraud, money laundering, and inadequate investor protections in the cryptocurrency space. Other recent actions include lawsuits against Genesis Global, Digital Currency Group, and Gemini, as well as a settlement with Hong Kong-based CoinEx.
High-Profile Legal Cases in the Crypto Industry
The cryptocurrency industry has witnessed several high-profile legal cases recently, including the conviction of FTX founder Sam Bankman-Fried on federal charges and Binance’s founder agreeing to plead guilty to U.S. anti-money laundering law violations.
Details of the Settlement Payment
KuCoin’s settlement payment comprises a $5.3 million payment to New York state and refunds totaling $16.7 million worth of cryptocurrency to approximately 177,800 New York investors.
KuCoin’s Market Standing
Despite this legal setback, KuCoin remains a significant entity in the cryptocurrency exchange market, trailing behind Binance, Coinbase, and Kraken in aspects such as traffic, liquidity, and trading volumes, as per data from CoinMarketCap.