KuCoin settles with New York for $22 million and agrees to block users from state: Reuters
Crypto exchange KuCoin will exit the New York market and pay $22 million to settle a lawsuit brought by the state earlier this year, according to a report from Reuters. New York Attorney General Letitia James had sued the digital asset exchange in March for violating the state's laws. The suit had named ether, along with other tokens, as unregistered securities that KuCoin had listed in the state.
The settlement will see KuCoin pay $5.3 million to the state and refund $16.7 million worth of cryptocurrency to 177,800 New York investors, according to Reuters. New York has one of the most active U.S. states in terms of writing new crypto rules. Last month, the New York Department of Financial Services released guidance to strengthen how firms list or delist coins. Other crypto firms have been probed in New York as well. In 2021, crypto exchange Bitfinex and Tether settled with the New York attorney general's office for $18.5 million after a two-year dispute. KuCoin CEO Johnny Lyu announced the settlement as well on X.
