Crypto Exchange KuCoin Settles New York Lawsuit for $22M

By: Eva Baxter

Crypto exchange, KuCoin has come to an agreement to pay $22 million to settle a lawsuit filed by the office of the New York State Attorney General. In addition, as part of the settlement deal, it has agreed to stop its operations in the state of New York and wind up all relevant accounts of its residents within the next 120 days.

KuCoin has been accused of operating both securities and commodities services without acquiring the necessary license to do business in New York State. This lawsuit was part of the NYAG's broader efforts to regulate crypto companies it referred to as 'shadowy'.

As part of the agreed upon sum, KuCoin will return $16.77 million to its New York customers and direct an additional $5.3 million to the Attorney General's office. This move comes after the crypto exchange was also charged of trading in cryptocurrencies and selling the KuCoin Earn product to generate income for both the platform and its investors, without being properly registered as an exchange.