KuCoin Forces To Exit New York, Following $22 Million Lawsuit

It has been just revealed the fact that KuCoin has been forced to exit NYC, following a huge lawsuit. Check out more details about all this below.

KuCoin, a cryptocurrency exchange platform based in the Seychelles, has agreed to settle a lawsuit that accused it of failing to register as a securities and commodities broker-dealer in New York.

As part of the settlement, the exchange will no longer operate in the state, pay a penalty of $5.3 million to the state, and provide refunds totaling over $16.7 million to affected customers.

Additionally, KuCoin is prohibited from trading securities and commodities in New York and from creating new accounts for New York residents.

Existing customers in the state will only be able to withdraw their assets from the platform.

James stated the following:

“Crypto companies should understand that they must play by the same rules as other financial institutions, and my office will hold them accountable when they don’t. This settlement will ensure every New Yorker who put their money into KuCoin can get it back and that KuCoin won’t be able to put other New York investors at risk.”

According to KuCoin CEO Johnny Lyu, the recent settlement demonstrates the company’s commitment to complying with regulations. He also reassured affected customers that their assets are safe.

Lyu stated that as part of their agreement, users who are required to leave KuCoin will receive an email or SMS within the next 10 days.

They also noted the fact that security is the top priority for customers.

In other recent news, Kevin Svenson, an analyst and trader, is optimistic about Bitcoin’s (BTC) recovery after it almost hit the $40,000 mark earlier this week.

Svenson believes that Bitcoin may confirm a bullish trend based on the ascending broadening wedges pattern it has formed on the four-hour chart.