KuCoin Token

<p>KuCoin, one of the largest global cryptocurrency exchanges, has arrived at a comprehensive settlement with the authorities in the state of New York in the United States, agreeing to pay $22 million.</p><h2 id="header-0">Substantial fine and refunds</h2><p>The settlement not only involves a substantial fine but also includes refunds to New York investors and the cessation of trading activities in the state. This resolution comes amidst an assertive effort by New York authorities to shape and regulate the crypto landscape within the state.</p><p>According to a <a href="https://ag.ny.gov/press-release/2023/attorney-general-james-secures-more-22-million-cryptocurrency-platform-operating" rel="noopener noreferrer nofollow">statement</a> released by New York Attorney General Letitia James on Tuesday, KuCoin will refund a total of $16.7 million to 177,800 New York investors. In addition to the refunds, KuCoin will pay a $5.3 million fine to the state.</p><p>The settlement addresses allegations that KuCoin failed to register as a securities and commodities broker-dealer while falsely presenting itself as a cryptocurrency exchange.</p><p>Taking to social media platform X, James <a href="https://x.com/NewYorkStateAG/status/1734605235308638483?s&#61;20" rel="noopener noreferrer nofollow">wrote</a>:</p><p>”My office is making crypto platform <a href="https://twitter.com/kucoincom" rel="noopener noreferrer nofollow">&#64;kucoincom</a> pay over $22 million for illegally operating in New York. KuCoin is also banned from doing business in our state. Shady cryptocurrency platforms must play by the same set of rules as everyone else or face the consequences.”</p><p>At the time of taking action against KuCoin in March, James <a href="https://x.com/NewYorkStateAG/status/1633944679879172097?s&#61;20" rel="noopener noreferrer nofollow">described</a> the lawsuit as “our eighth action to rein in shadowy cryptocurrency platforms that disregard our laws and put New Yorkers at risk.”</p><h2 id="header-1">Lack of registration</h2><p>KuCoin, based in the Seychelles, allows investors to trade digital assets through its website and app. However, the state of New York argued that KuCoin could not legitimately claim to be an exchange due to its lack of registration with the U.S. Securities and Exchange Commission (SEC) and the proper designation by the Commodity Futures Trading Commission (CFTC), as mandated by state law.</p><p>Ranked as the fourth-largest exchange by spot and derivatives trading volume, KuCoin’s KCS token, a profit-sharing token on the platform, has experienced a 39% increase since the start of the week. At the time of writing, it has a unit price of $13.80. This surge is a consequence of the clarity and finality brought about by the settlement, alongside rising expectations for a U.S. exchange-traded fund (ETF) directly investing in Bitcoin, sparking a broader rally in lesser-known cryptocurrencies over the past month.</p><h2 id="header-2">Potential rumors</h2><p>KuCoin CEO Johnny Lyu <a href="https://x.com/lyu_johnny/status/1734576431903211831?s&#61;20" rel="noopener noreferrer nofollow">took</a> to the X platform on Tuesday to outline details of the settlement. Interestingly, Lyu included this notification:</p><p>”I also want to give you a heads-up about potential rumors surfacing in the next few weeks. Please stick to the official website of KuCoin for accurate information.”</p><p>While the settlement may have brought a certain degree of clarity to the KuCoin platform, Lyu’s comment suggests that there may be other issues about to emerge in the short term.</p><p>The lawsuit against KuCoin is part of a broader regulatory trend in New York, with Attorney General James having previously filed a similar complaint against CoinEx. Additionally, a settlement in January involving crypto companies Nexo Inc. and Nexo Capital Inc. resulted in a financial resolution of up to $24 million for New York and nine other states.</p>

KuCoin resolves lawsuit through settlement and New York market exit

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