New York State Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange Kucoin. March 9 announcement.
New York Aims to Block KuCoin
James announced the charges in a press release today, stating:
“Today’s actions are the latest in our efforts to curb dark cryptocurrency companies…KuCoin operated in New York without a registration, so we hold them accountable. We are taking strong action to protect our investors.”
The Office of the Attorney General (OAG) is now looking to block KuCoin from operating in New York. It also aims to restrict access to the company’s website until it is compliant. The company has been instructed to implement geo-blocking functionality to do so.
OAG said it was able to trade various cryptocurrencies on the exchange even though the company is not registered to offer these services in New York.
The firm further alleges that KuCoin is an exchange, but that it is not registered with the U.S. Securities and Exchange Commission (SEC) and has not received any relevant designation from the Commodity Futures Trading Commission (CFTC). says.
The Secretariat further alleges that KuCoin trades several coins that are considered securities or commodities, such as Ethereum (ETH), Terra (LUNA) and TerraUSD (UST). Also, a loan product, he claims to offer unregistered securities through KuCoin Earn.
OAG takes a strict stance on crypto
The Attorney General’s office has taken action against several other cryptocurrency companies in the past, filing similar allegations against CoinEx in late February.
The firm filed fraud charges against former Celsius CEO Alex Mashinski in January 2023 and reached a $45 million settlement with Nexo that same month. The Secretariat also issued a general warning to crypto investors and sought information from individuals affected by the crypto market crash at various points in 2022.
OAG often takes action against companies that have not obtained a BitLicense from the New York Financial Services Authority. With only 33 of his companies currently licensed or chartered, there are plenty of opportunities to impose that rule on your office.