Cryptocurrency exchange KuCoin has agreed to pay $22 million to settle a lawsuit filed by the New York Attorney General (NYAG). The exchange was accused of operating in the state without proper registration. As part of the settlement, KuCoin will reimburse New York customers with $16.77 million and pay an additional $5.3 million to the NYAG.
KuCoin admitted to operating a cryptocurrency trading platform without being registered as an exchange under New York State laws. To rectify the situation, the exchange will provide full refunds totaling $16,766,642 to 177,800 investors in New York. Eligible investors can withdraw their assets directly from KuCoin within the next 90 days, with access to withdrawals restricted within 30 days.
KuCoin CEO Johnny Lyu confirmed the settlement and announced the company’s decision to exit the New York market. All accounts of New York residents will be closed within 120 days, and they will be prevented from creating new accounts in the future.
This settlement highlights the growing scrutiny and emphasis on compliance within the cryptocurrency industry, particularly in major financial hubs like New York. It comes at a time when the state is actively shaping its crypto regulatory landscape, with recent guidance released by the New York Department of Financial Services aimed at strengthening procedures for listing or delisting digital assets by financial firms.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇸🇨 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Letitia James, Johnny Lyu |
| Companies | New York Attorney General, KuCoin, New York Department of Financial Services |
| Currencies | None |
| Securities | None |
