KuCoin to Pay $22M, Exit New York to Settle State Suit

Crypto exchange KuCoin agreed to pay a total of $22 million and terminate access for users in New York state, court documents filed on Tuesday from the Supreme Court of the State of New York County showed.

Kucoin will refund $16.77 million to New York customers and pay $5.3 million to the Attorney General of the State of New York to settle charges it violated securities laws by offering tokens – including ether – that meet the definition of a security without registering with the attorney general’s office.

Attorney General of the State of New York Letitia James filed the suit in March, the first time a regulator had claimed in court that ether was a security.

“I want to update all of you about our latest compliance action. @kucoincom has reached a settlement with the New York Attorney General (NYAG), solidifying our commitment to compliant operations,” KuCon CEO Johnny Lyu said in a tweet.

KuCoin will need to terminate access to its services and close relevant accounts for New York users no later than 120 days after the effective date of the order, the document said.

UPDATE (Dec. 12 15:13 UTC): Adds detail on case in third, fifth paragraphs.