New York Attorney General Letitia James secured over $22 million from KuCoin, a major cryptocurrency trading platform, for operating without proper registration and misrepresenting itself as an exchange.
The settlement requires KuCoin to refund more than $16.7 million to over 150,000 New York investors and pay a $5.3 million penalty to the state.
KuCoin, based in Seychelles, violated New York law by offering trading services without registering as a securities and commodities broker-dealer and falsely claiming to be a registered exchange.
The platform is now banned from trading securities and commodities in New York and must cease providing services to New Yorkers.
KuCoin must also cooperate with U.S. law enforcement, including freezing assets and responding to information requests.