KuCoin to Exit New York and Pay $22 Million in Settlement Deal: Report
KuCoin, a major cryptocurrency exchange, has settled with the New York Attorney General (NYAG) and will cease its services in New York.
The settlement involves a $22 million payment, including $5.3 million to New York State and $16.7 million in crypto refunds to about 180,000 New York investors.
NYAG Letitia James sued KuCoin in March 2023 for selling unregistered securities, including Ether (ETH), Terra (LUNA), and TerraUSD (UST).
The lawsuit claimed these tokens were securities and commodities sold without proper registration.
KuCoin CEO Johnny Lyu announced the settlement and informed that affected users will be notified via email or SMS within 10 days. Lyu emphasized the priority of asset security during this process.
New York continues its strict oversight of the crypto industry. Besides KuCoin, other exchanges like CoinEx have also settled with the NYAG for illegal operations, with CoinEx paying nearly $2 million in refunds and penalties and ceasing its New York operations. Tether and Bitfinex previously reached a similar settlement.
Recently, the NYAG took action against Genesis, Gemini, and Digital Currency Group (DCG), alleging fraud of over $1 billion from more than 230,000 investors. These developments highlight New York's firm stance on cryptocurrency regulation and compliance.
