In a significant move, KuCoin has agreed to a $22 million settlement with the New York Attorney General’s Office. The decision comes after the New York Supreme Court’s recent filing, marking a crucial development in crypto exchange regulation.
KuCoin will disburse $16.77 million in refunds to its New York customers and pay an additional $5.3 million to the Attorney General’s office.
This settlement resolves allegations that KuCoin violated securities laws by offering tokens, including Ether, considered securities without proper registration.
Notably, this case is the first instance where a regulator has legally challenged Ether as a security.
Impact on New York Customers
As part of the agreement, KuCoin will cease operations for New York residents, closing relevant accounts within 120 days from the order’s effective date.
This move is a compliance step, underlining KuCoin’s commitment to regulatory standards. In a recent tweet, KuCoin CEO Johnny Lyu affirmed the company’s dedication to compliant operations.
The settlement may set a precedent for future digital assets and securities law cases. It highlights the evolving landscape of crypto regulation and legal authorities’ increasing scrutiny of digital asset exchanges.
Also Read: KuCoin Ventures Supports TON Foundation with $20,000 Grant
