Crypto exchange KuCoin will cease operating in New York as part of an agreement to settle a lawsuit accusing the Seychelles-based platform of failing to register as a securities and commodities broker-dealer.
In a new statement, the office of New York Attorney General Letitia James says KuCoin must pay the state a $5.3 million penalty and give refunds totaling more than $16.7 million.
The exchange is also banned from trading securities and commodities in the Big Apple as well as from creating new accounts for New Yorkers. KuCoin’s existing customers in the state will only be able to withdraw their assets from the platform.
Says James,
“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.”
KuCoin CEO Johnny Lyu says the settlement shows the firm’s commitment to compliance operations and tells affected customers that their assets are safe.
“Under our agreement, users required to retire from KuCoin will receive an email or SMS in about 10 days and onwards. If you don’t receive either of these, you’re alright. Rest assured – your asset security is always guaranteed and remains our top priority during this process.”
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