KuCoin Agrees To $22 Million Settlement With New York. Exits State Market Amid Tightening Crypto Regulations

Agreement of Kucoin with the State of New York

✍️ 29 December, 2023 - 9:24 👤 Editor: Jakub Motyka

KuCoin, a well known cryptocurrency exchange, has recently settled a lawsuit with the State of New York for $22 million and agreed to exit the New York market. This decision comes as a resolution to the lawsuit filed earlier this year by New York Attorney General Letitia James, who accused the exchange of violating state laws. Specifically, the lawsuit addressed KuCoin's listing of ether and other tokens, labeling them as unregistered securities within the state.

Under the terms of the settlement, KuCoin will pay $5.3 million to the State of New York and refund a total of $16.7 million in cryptocurrency to approximately 177,800 investors based in New York. This settlement highlights the growing regulatory focus on cryptocurrency firms, underscoring the importance of compliance with existing financial regulations. Attorney General James emphasized this in her statement, reminding crypto companies that they are subject to the same rules as other financial institutions.

Why Has This Happened To Kucoin In New York

New York is known for being one of the most active U.S. states in terms of developing new cryptocurrency regulations. Recently, the New York Department of Financial Services issued guidance aimed at strengthening the procedures for listing or delisting coins by crypto firms.

This settlement with KuCoin is not the first of its kind in New York; other crypto firms, including Bitfinex and Tether, have previously faced probes and reached settlements with the New York attorney general's office. In 2021, Bitfinex and Tether settled for $18.5 million after a two-year dispute, marking another significant case in the state's ongoing efforts to regulate the cryptocurrency industry.

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