cryptoknowmics.com
New York state Attorney General Letitia James has announced that she has filed a lawsuit against cryptocurrency exchange KuCoin after she was able to buy and sell crypto on the exchange, which is not registered in New York.
New York AG's Lawsuit Against KuCoin
The complaint, filed on March 9 in the Supreme Court of the State Of New York County, alleges that Seychelles-based KuCoin violated securities law when it sold, offered to sell, purchased, and offered to purchase cryptocurrencies that are commodities and securities to New Yorkers, without being registered with the attorney general’s office. In addition, KuCoin is alleged to have issued and sold its KuCoin Earn product, which the complaint labels a security, without registering as a securities broker or dealer. Also, it alleges KuCoin misrepresented itself as an exchange since it lacked registration for that function as well. The suit stated that under both state and federal authority, ETH, LUNA, and UST are commodities under the state’s Martin Act, and KuCoin filed to register as a commodities broker.
SEC vs LBRY Case
The suit specifically cites the SEC v. LBRY case to support that claim. It seeks a permanent injunction against KuCoin selling and buying securities and commodities to and from New Yorkers. In addition, it asks the court to demand an accounting of all New Yorkers who have used the exchange and disgorgement of funds illegally obtained from New Yorkers. This is James’s eighth action to rein in shadowy cryptocurrency platforms.