Kucoin To Stop its Services in New York and Pay $22 Million in Settlements
KuCoin to pay $22M in settlements, halting New York services, as it faces accusations of violating securities laws.
KuCoin has announced that it will be stopping its services in New York, Kucoin will also be paying a total of $22 million in settlements. They will pay back New York customers about $16.77 million and pay $5.3 million in fines, as revealed in court documents filed on Tuesday at the Supreme Court of the State of New York County.
New York Authorities accused Kucoin of violating securities laws by offering tokens without registration, This includes popular cryptocurrencies like ether.
New York's Attorney General sued KuCoin in March, for operating without state registration. The settlement reinforces the need for crypto companies to follow financial rules. All these led to the $22 million settlement,
KuCoin's CEO announced compliance measures, informing affected users about the settlement and assuring asset security.
New York has taken legal action against other crypto firms for fraud, including a $1.8 million settlement with CoinEx and charges against FTX founder Sam Bankman-Fried. Binance's founder also faced legal issues.
