New York Attorney General Letitia James has registered a complaint against KuCoin, a cryptocurrency platform, claiming that it breached New York’s registration requirements. The lawsuit was filed in Manhattan State Supreme Court on Wednesday.
A Singapore-based cryptocurrency exchange has been alleged of breaching New York’s Martin Act, which requires companies that run businesses in the state to register with the Attorney General’s office. The act is meant to prevent investors from being involved in fraudulent or deceptive activities.
The lawsuit alleged that KuCoin enabled New York citizens to use its platform to buy and sell cryptocurrencies without registering with the state. It also accused KuCoin of making false and misleading claims about its regulatory compliance.
Moreover, the site is also supposed to have released and distributed “KuCoin Earn,” a product that the AG claims are secure, without being registered as a securities broker or dealer.
In a statement, Attorney General Letitia said, KuCoin should be banned permanently from selling and buying securities and commodities to and from New York citizens, as well as requiring the development of geo-blocking to prohibit New York residents from reaching its website and mobile app. Furthermore, the Attorney also urged the court to order the exchange to compensate the victim.
How will this Lawsuit Impact the Cryptocurrency Industry?
The lawsuit against KuCoin is the latest example of regulators cracking down on the cryptocurrency industry. The industry has faced increased scrutiny from regulators across the world, who are feared for the potential for fraud, money laundering, and other illicit activities.
The lawsuit may have a major impact on other cryptocurrency platforms that run in New York. It could also heighten regulatory oversight of the industry as a whole in the future.
