KuCoin Pays $22 Million to Settle Crypto Lawsuit, Exits New York Market Blocking Users
In Brief
KuCoin agreed to pay $22 million to settle its crypto lawsuit and exit the New York market reimbursing $16.7 million in cryptocurrency.
Cryptocurrency exchange KuCoin agreed to block New York users and committed to paying $22 million to settle a lawsuit initiated by the state. The move aligns with the state’s efforts to regulate digital assets companies.
KuCoin’s $22 million payment comprises a $5.3 million fine to the state and the reimbursement of $16.7 million worth of cryptocurrency to 177,800 New York investors.
The legal action against KuCoin unfolded earlier this year when the Seychelles-based exchange was accused of neglecting to register with the state before facilitating cryptocurrency transactions.
As part of the settlement terms, KuCoin has also committed to discontinuing the trading of securities and commodities in New York. This resolution coincides with the intensified regulatory efforts by US authorities and law enforcement agencies targeting issues like fraud, money laundering and insufficient investor protections within the cryptocurrency space.
In terms of market performance, KuCoin currently ranks below Binance, Coinbase and Kraken among cryptocurrency spot exchanges, considering factors such as traffic, liquidity and trading volumes, according to CoinMarketCap’s data.
US Takes Measures to Bolster Cryptocurrency Oversight
In response to the evolving landscape of the digital asset industry, the United States has taken decisive steps to enhance regulatory oversight and tighten control over cryptocurrencies.
In the recent development, US Senator Elizabeth Warren announced that she along with other five senators has co-sponsored the “Digital Asset Anti-Money Laundering Act”. The objective of the legislation is to align the digital asset ecosystem with anti-money laundering and counter-financing of terrorism frameworks, addressing potential loopholes.
KuCoin’s pledge to cease trading securities and commodities in New York aligns with country broader regulatory efforts addressing issues such as fraud and money laundering, illustrating a nationwide push for stringent oversight in the evolving digital asset landscape.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
