KuCoin To Leave the New York Market And Pay Out $22 Mln

One of the most famous cryptocurrency platforms, KuCoin, will leave the jurisdiction of New York, according to a ruling from the Office of the New York Attorney General. In March 2023, NYAG filed a lawsuit against a cryptocurrency exchange based in the Seychelles. The accusation was that it didn’t register before allowing users to buy and sell cryptocurrency on its platform.

“Unregistered offshore crypto platforms pose a risk to investors, consumers and the broader economy,” Attorney General Letitia James said in a press release.

In a post on X (Twitter), KuCoin CEO Johnny Liu confirmed the news, saying that those users who live in New York will receive a message in the form of an email or text message “in the next 10 days.”

The agreement calls for Kucoin to refund $16.7 million to approximately 150,000 New York customers, with $5 million going directly to the state. The total payment will be approximately $22 million.

The NYAG’s office has actively filed lawsuits against crypto companies that allegedly violated New York laws. In October, lawsuits were filed against Digital Currency Group, Gemini and Genesis, alleging that the Gemini Earn program constitutes an investment contract. Hong Kong-based CoinEx was also sued, which subsequently settled with the government for $1.7 million and left New York.