KuCoin, one of the world’s largest crypto exchanges, halted its operations in New York state as part of a $22 million settlement to resolve a legal battle initiated by state authorities.
The lawsuit, filed by New York Attorney General Letitia James in March, accused KuCoin of allowing investors to trade cryptocurrencies without proper registration.
As part of the settlement, KuCoin will discontinue trading securities and commodities in New York, marking another move by regulators to tighten oversight in the crypto market.
The $22 million settlement includes a $5.3 million payment to the state and the refunding of $16.7 million worth of cryptocurrency to over 175,000 New York investors.
This development comes in the context of a broader crackdown by U.S. regulators on perceived fraud and inadequate investor protections within the cryptocurrency sector. Notably, the New York Attorney General's office had previously reached a $1.8 million settlement with Hong Kong-based crypto exchange CoinEx for similar reasons.
The settlement also requires KuCoin to terminate access for users in New York within 120 days of the order's effective date.