US Authorities Impose New Sanctions on Top Global Crypto Exchange
In a recent news article, the Coinmooner team gathered information about an event involving one of the world's largest cryptocurrency exchanges, KuCoin. This time, it's not just Binance that has come under the scrutiny of U.S. authorities for alleged illegal activities, but also the crypto exchange that ranks fourth according to CoinMarketCap analytics.
KuCoin is a cryptocurrency exchange focused on facilitating the global circulation of digital assets. With an emphasis on intuitive design, easy registration, and high-level security, KuCoin supports futures trading, integrated P2P exchange, cryptocurrency purchases with cards, and instant swaps. Known as the "people's exchange," KuCoin has facilitated 1.2 trillion transactions and serves over 30 million users worldwide. The company provides technological products and the KuCoin ecosystem based on the KCS token.
In March of this year, Letitia James, the attorney general of New York, concluded an investigation into KuCoin, a cryptocurrency platform based in the Seychelles. According to her, the company failed to comply with the registration requirement before allowing investors to trade digital assets on its platform.
The charges also highlight that the KuCoin Earn platform, providing lending and staking services, violates laws by selling unauthorized securities. Using a computer with an IP address in New York, the Attorney General managed to open an account on KuCoin, conducting token transactions for a fee. This is not the first incident with regulatory authorities for KuCoin.
This case aligns with the overall trend of tightening regulations in the cryptocurrency space. In October, the Attorney General of New York filed lawsuits against cryptocurrency companies Gemini, Genesis, and Digital Currency Group, accusing them of fraud and misleading investors.
KuCoin has agreed to pay $22 million and restrict access for residents of New York as part of a settlement in response to legal action initiated by Attorney General Letitia James in March. Coinmooner's team gathered this information for our readers.
The resolution involves a refund of $16.77 million to New York customers and a payment of $5.3 million to the Attorney General for violating securities laws. The lawsuit specifically noted that KuCoin offered tokens, including Ether, qualifying as securities without proper registration. Concerns were also raised about Tether, accusing it of insufficiently backing the stablecoin "1 to 1" with dollars in a bank account.
KuCoin's CEO, Johnny Lyu, confirmed the settlement on Twitter:
I want to update all of you about our latest compliance action. @kucoincom has reached a settlement with the New York Attorney General (NYAG), solidifying our commitment to compliant operations.
According to court documents, KuCoin will cease services and close relevant accounts for users in New York within 120 days of the order taking effect. Our Coinmooner team is closely monitoring all events and promises to provide you with all the latest news! We also want to remind you of the importance of conducting a personal analysis of all events in the Web3 industry. Always prioritize your security, safeguard your data, and stay informed about the latest trends.