KuCoin to leave New York pays $22 million settlement

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New York Attorney General Letitia James has secured a $22 million penalty from KuCoin, one of the world’s largest cryptocurrency exchanges. The settlement resolves a lawsuit filed earlier this year, accusing KuCoin of violating state laws by operating without registering as a securities and commodities broker-dealer. 

Under the terms of the deal, KuCoin must refund more than 150,000 New York-based users a total of $16.7 million they had deposited. It will also pay over $5 million in fines to New York state regulators.

The agreement also mandates KuCoin to implement measures that block New York residents from using its platform and prohibit opening new accounts for customers in the state. 

Attorney General James emphasized that crypto companies must adhere to the same rules as other financial institutions. She stated that: 

“Crypto companies should understand that they must play by the same rules as other financial institutions, and my office will hold them accountable when they don’t. This settlement will ensure every New Yorker who put their money into KuCoin can get it back and that KuCoin won’t be able to put other New York investors at risk. I will continue to take action against any company that brazenly disregards the law and jeopardizes New Yorkers’ savings and investments.”

The KuCoin case represents the latest action in broader regulatory scrutiny around cryptocurrency providers across the U.S. The Securities and Exchange Commission and Department of Justice have aggressively targeted significant industry players such as Binance and Coinbase over alleged violations of financial laws.

According to James, the increased oversight aims to safeguard investors and ensure integrity in digital asset markets, though it marks another setback for the embattled crypto industry.

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