• NY Attorney General Letitia James has filed a lawsuit against KuCoin, claiming they illegally operated in the state without registering.
• The complaint states that the crypto exchange sold and offered purchase of cryptocurrencies that are commodities and securities to New York residents.
• In the case, Attorney General Letitia James stated Ethereum (ETH), Terra (LUNA) and TerraUSD (UST) as “Security” which is supported by the US Securities and Exchange Commission (SEC).
KuCoin Sued by NYAG
The leading crypto exchange KuCoin is being sued by the New York Attorney General’s office for allegedly breaking state securities and commodities laws. In the case, Attorney General Letitia James makes the shocking statement that Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is a “Security” in addition to Terra (LUNA) and TerraUSD (UST), as previously claimed by the United States Securities and Exchange Commission (SEC). According to an official tweet from Letitia James, she has filed a lawsuit in an effort to suppress unregistered cryptocurrency platforms. This is one of the first times a regulator has declared in court that “ETH is a security.”
KuCoin Unregister Exchange?
According to the complaint filed on March 9 in Supreme Court of State of New York County, Letitia James stated that “it sold and offered purchase of cryptocurrencies that are commodities and securities” to residents of New York without registering with attorney general’s office. Also, NYAG claimed, “Seychelles-based cryptocurrency exchange KuCoin misleading consumers by representing itself as an exchange.”
KCS Price Decline
According to CoinGecko data, KuCoin’s native crypto KCS traded at $8.01 with 24-hours trading volume of $2.4 million. KCS price declined over 5.5% in day & 9% in week after news about this lawsuit broke out.
Kucoin Fantom Partnership
Today 5th largest crypto exchange partnered with layer-1 EVM-compatible platform Fantom by adding FTM to its wallet despite ongoing legal battle with NYAG’s office over alleged illegal activities in state.
The latest developments suggest that regulators have become increasingly active when it comes to clamping down on unregistered exchanges operating within their jurisdiction or offering services related to securities assets such as ETH which might be considered as security according regulations set forth by SEC & other agencies across globe.