KuCoin, a major cryptocurrency exchange, has reached a settlement with the State of New York, agreeing to pay a total of $22 million and terminate access for users in the state.
KuCoin, a major cryptocurrency exchange, has reached a settlement with the State of New York, agreeing to pay a total of $22 million and terminate access for users in the state, according to court documents filed on Tuesday in the Supreme Court of the State of New York County.
As part of the agreement, KuCoin will refund approximately $16.77 million to its customers in New York and pay an additional $5.3 million to the Attorney General of the State of New York. The charges against KuCoin stem from allegations that the exchange violated securities laws by offering tokens which were deemed to meet the legal definition of securities. KuCoin had failed to register these offerings with the attorney general's office, leading to the legal action.
Attorney General Letitia James initiated the lawsuit in March, marking the first instance in which a regulator had claimed in court that Ethereum, the second-largest cryptocurrency by market capitalization, should be classified as a security.
In response to the settlement, KuCoin CEO Johnny Lyu said, "I want to update all of you about our latest compliance action. @kucoincom has reached a settlement with the New York Attorney General (NYAG), solidifying our commitment to compliant operations."
According to the court documents, KuCoin must terminate access to its services and close relevant accounts for users located in New York within 120 days from the effective date of the order.
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