KuCoin to Exit New York with $22M Lawsuit Settlement

KuCoin, a major cryptocurrency exchange, has agreed to pay $22 million to settle a lawsuit with the state of New York. The settlement follows accusations by Attorney General Letitia James that KuCoin failed to register with the state before allowing investors in New York to trade cryptocurrencies on its platform.

As part of the settlement, KuCoin will block New York users from its platform and cease trading securities and commodities in the state. This action aligns with ongoing efforts by U.S. regulators and law enforcement agencies to address issues of fraud, money laundering, and investor protection within the cryptocurrency industry.

Previously, James' office pursued legal action against other cryptocurrency firms, including Genesis Global, Digital Currency Group, Gemini, and CoinEx, for various alleged violations. This settlement also includes KuCoin refunding $16.7 million worth of cryptocurrency to around 177,800 New York investors alongside a $5.3 million payment to the state.

KuCoin's standing among cryptocurrency spot exchanges, based on factors such as traffic, liquidity, and trading volumes, trails behind Binance, Coinbase, and Kraken according to data from CoinMarketCap.