Crypto exchange KuCoin will stop operating in New York as part of an agreement to settle a lawsuit accusing the Seychelles-based platform of failing to register as a securities and commodities broker-dealer.
In a new statement, New York Attorney General Letitia James’ office said KuCoin must pay the state a $5.3 million fine and issue refunds totaling more than $16.7 million.
The exchange is also prohibited from trading securities and commodities in the Big Apple and from creating new accounts for New Yorkers. KuCoin’s existing customers in the state can only withdraw their assets from the platform.
Says James,
“Crypto companies must understand that they must adhere to the same rules as other financial institutions, and my office will hold them accountable if they do not. This settlement will ensure that every New Yorker who put their money into KuCoin can get it back and that KuCoin cannot put other New York investors at risk.”
KuCoin CEO Johnny Lyu say the settlement demonstrates the company’s commitment to compliance activities and tells affected customers that their assets are safe.
“As per our agreement, users who need to withdraw from KuCoin will receive an email or SMS within approximately 10 days and thereafter. If you don’t receive either, there’s nothing to worry about. Rest assured, the security of your assets is always guaranteed and remains our top priority throughout this process.”
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