KuCoin Resolves New York Legal Dispute with $22M Settlement

KuCoin, one of the world's leading cryptocurrency exchanges, has agreed to block access to its platform for users in the state of New York and pay a settlement of $22 million to resolve a legal dispute with state authorities, as reported by Reuters.

The $22 million settlement comprises a $5.3 million fine and the restitution of cryptocurrency totaling $16.7 million to 177,800 KuCoin customers in New York.

KuCoin is a cryptocurrency exchange registered in the Seychelles and holds the 6th position globally in daily trading volume, surpassing $2 billion, according to CoinGecko. The majority of the exchange's user traffic originates from the United States, the United Kingdom, and Turkey.

Letitia James, the Attorney General of the state of New York, emphasized, "Cryptocurrency companies need to recognize that they are subject to the same regulations as other financial institutions."

The legal action against KuCoin was initiated in March, with the Attorney General alleging that the platform violated laws by offering tokens without proper registration, deeming them equivalent to securities. This case marked one of the first instances where a regulatory authority equated the cryptocurrency Ethereum (ETH) to securities.

In a similar move in February, James filed a lawsuit against the cryptocurrency exchange CoinEx, asserting that the platform was operating without registration with the U.S. Securities and Exchange Commission (SEC) and offering unregistered securities to American customers. Following the legal action, CoinEx announced the cessation of services for U.S. customers, urging them to withdraw their assets.