KuCoin, one of the world’s largest cryptocurrency exchanges, has agreed to block New York users from accessing its platform and pay $22 million to settle a lawsuit from the state, it reports. RBC Crypto with reference to Reuters.
The $22 million figure includes a $5.3 million fine and the return of $16.7 million worth of cryptocurrency to the exchange’s 177,800 New York clients.
KuCoin is a crypto exchange registered in the Seychelles. According to CoinGeckoit ranks sixth in daily trading volume with more than $2 billion. The bulk of the exchange’s traffic comes from users from the USA, Great Britain and Turkey.
A prosecutor filed a lawsuit against KuCoin in March this year, alleging that the platform violated laws by offering tokens that meet the definition of a security without proper registration. This was one of the first cases when the regulator equated the Ethereum (ETH) cryptocurrency to securities.
Previously, in February, James filed a similar lawsuit against the crypto exchange CoinEx for failing to register with the US Securities and Exchange Commission (SEC) and offering unregistered securities to American clients. A few days later, CoinEx announced that it would stop serving US clients and asked them to withdraw their assets.
Source: Cryptocurrency
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