KuCoin Sued for Illegally Operating in New York: AG
• New York State Attorney General, Letitia James has filed a lawsuit against KuCoin for offering crypto services without registering in New York.
• The suit alleges that KuCoin violated securities law by selling and purchasing cryptocurrencies, such as Ethereum (ETH), that are securities and commodities to New Yorkers without first seeking registration.
• The price of KCS, the native token of KuCoin, has dropped 5.78% due to the recent developments.
New York State Attorney General Files Lawsuit Against KuCoin
The New York State Attorney General, Letitia James has filed a lawsuit against KuCoin alleging that they offered crypto services without registering in New York. According to the suit, this violates securities law as they were selling and purchasing cryptocurrencies, such as Ethereum (ETH) which are classified as both commodities and securities under state authority. The price of their native token KCS has consequently dropped 5.78%.
KuCoin Not Registered In New York
Letitia James was able to buy and sell cryptocurrencies on the Seychelles-based cryptocurrency exchange despite it not being registered in the state of New York as a broker or dealer for security purposes. This was also backed up by her allegation that KuCoin had sold its product “KuCoin Earn” which is considered a security but had not been registered firstly.
Allegations Of Misrepresentation
In addition to violating securities laws, there have also been allegations from the NY AG that the platform misrepresented itself by claiming it was registered when it wasn’t – allowing them to function as one when legally they couldn’t be doing so yet. Furthermore she referred to ETH as a security in line with other regulatory authorities located in different states within America.
Price Drop Of KCS Token
As a result of these developments concerning Kucoin’s alleged violations of securities laws, their native token KCS has seen an overall drop of 5.7%. This could potentially indicate investor hesitance towards either investing in or continuing their investments with this particular platform due to fears regarding legal repercussions over any further violations made by them going forward
The NY state AG’s lawsuit against Kucoin indicates an increased focus on ensuring adherence with security laws amongst cryptocurrency exchanges operating within America – especially those located within individual states like NY itself . As far as this case goes however much remains unresolved at present given there is yet no official judgement rendered on it from any court making any current conclusions highly speculative at best .