- New York AG Letitia James settled with Mek Global Limited and Phoenixfin PTE Ltd., both doing business as KuCoin, to resolve allegations that the cryptocurrency platform violated the Martin Act when it failed to register as a securities and commodities broker-dealer and falsely represented itself as an exchange, in violation of state laws including the Martin Act.
- As previously reported, AG James filed sued KuCoin in March 2023, alleging the company violated the Martin Act by engaging in the sale, offer, and purchase of cryptocurrencies that qualify as commodities and securities; issuing and selling a security product called “KuCoin Earn”; and presenting itself as an “exchange,” all without the registrations or designations mandated by New York law.
- Under the terms of the settlement, KuCoin must pay approximately $16.8 million in restitution to over 150,000 New York investors and $5.3 million in disgorgement to the state. In addition, KuCoin is banned from trading securities and commodities in New York and from making its platform available to New Yorkers.