New York Legal professional Normal Letitia James has filed a lawsuit towards the cryptocurrency alternate KuCoin, in response to a March 9 announcement.
New York goals to dam KuCoin
James introduced fees in a press launch at present, stating:
“At the moment’s motion is the most recent in our efforts to rein in shadowy cryptocurrency corporations … KuCoin operated in New York with out registration and that’s the reason we’re taking sturdy motion to carry them accountable and shield traders.”
The Workplace of the Legal professional Normal (OAG) now goals to cease KuCoin from working in New York. It additionally goals to have the corporate limit entry to its web site till it may comply. The corporate has been instructed to implement a geo-blocking characteristic so as to take action.
The OAG stated that it was capable of commerce numerous cryptocurrencies on the alternate despite the fact that the corporate just isn’t registered to offer these providers in New York.
The workplace moreover says that KuCoin claims to be an alternate however just isn’t registered with the U.S. Securities and Alternate Fee (SEC), nor has it gained the related designation from the Commodities and Futures Buying and selling Fee (CFTC).
The workplace additional alleges that KuCoin trades a number of cash which might be thought of securities or commodities resembling Ethereum (ETH), Terra (LUNA), and TerraUSD (UST). It additionally alleges that it affords unregistered securities by way of its lending product, KuCoin Earn.
OAG takes strict stance on crypto
The Legal professional Normal’s workplace has taken motion towards a number of different cryptocurrency corporations prior to now. It made comparable allegations towards CoinEx in late February.
The workplace filed fraud fees towards former Celsius CEO Alex Mashinsky in January 2023 and reached a $45 million settlement with Nexo that very same month. The workplace moreover issued a common warning to crypto traders and sought data from people affected by the crypto market crash at numerous factors in 2022.
The OAG typically takes motion towards corporations that haven’t obtained a BitLicense from the New York Division of Monetary Providers. Presently, simply 33 companies have a license or constitution, giving the workplace loads of alternatives to impose its rule.
