New York Attorney General Letitia James has reached a $22 million settlement with KuCoin, one of the world’s largest cryptocurrency exchanges. The agreement resolves a lawsuit that accused KuCoin of operating without proper registration as a securities and commodities broker-dealer, in violation of state laws.
As part of the settlement, KuCoin will refund over $16.7 million to more than 150,000 users based in New York who had deposited funds on the platform. Additionally, the exchange will pay fines totaling over $5 million to New York state regulators.
The settlement also includes provisions that require KuCoin to implement measures to block New York residents from using its platform and to prohibit the opening of new accounts for customers in the state.
New York Attorney General James emphasized that cryptocurrency companies must adhere to the same rules as traditional financial institutions. She stated that this settlement ensures that every New Yorker who invested in KuCoin can recover their funds and that the exchange will not be able to put other New York investors at risk. She also pledged to take action against any company that disregards the law and jeopardizes the savings and investments of New Yorkers.
The KuCoin case is part of a broader regulatory crackdown on cryptocurrency providers in the United States. The Securities and Exchange Commission and the Department of Justice have been targeting major players in the industry, such as Binance and Coinbase, for alleged violations of financial laws.
The increased regulatory oversight is aimed at protecting investors and ensuring the integrity of digital asset markets, but it represents another setback for the embattled cryptocurrency industry.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Letitia James |
| Companies | Securities and Exchange Commission, New York Attorney General, KuCoin, Department of Justice, New York state regulators |
| Currencies | None |
| Securities | None |
