New York State Attorney General files lawsuit against KuCoin

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  • NY State AG was able to buy and sell crypto on KuCoin.
  • KuCoin however is not registered in New York.
  • This is the AG’s eighth lawsuit against the shady cryptocurrency platform.

New York State Attorney General Letitia James has announced that she has filed a lawsuit against KuCoin To issue crypto services in New York without registration.

James says she was able to buy and sell cryptocurrencies on the Seychelles-based cryptocurrency exchange, despite the fact that it is not registered as a securities broker or dealer in New York.

securities law violations

In the lawsuit, filed March 9 in New York County State Supreme Court, James also alleged that KuCoin circumvented securities law by selling and offering to buy and sell securities and commodities for New Yorkers without first seeking to register. Violated. ,

Furthermore, the lawsuit also alleges that KuCoin commits error by selling its KuCoin Earn product. AG has labeled this product as a security that has not been registered.

There are also allegations that KuCoin misrepresented itself as it has not registered itself as one in order to be allowed to act as one.

James cites Ethereum as a security in the lawsuit

The New York AG lawsuit also states that under state and federal authority, LUNA, UST, and ETH are classified as commodities under the state’s Martin Act and that KuCoin has applied to register as a commodities broker. filed.

This is the first time the AG has referred to Ethereum’s ether (ETH) as a security, although similar allegations have been made by people at other regulatory authorities in the US.

KuCoin’s Native Token KCS Drops 5.7%

The price of KCS, the native token of KuCoin, has dropped by 5.78% partly due to the recent developments.

KuCoin, ranked the fifth largest cryptocurrency exchange, could be fined if found guilty, as was the case with Kraken, one of the leading cryptocurrency exchanges in the US, which The fine was imposed by the Commodity Futures Trading Commission (CFTC) For offering unregulated crypto investment products.

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