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KuCoin was the latest crypto exchange to agree on fines with New York regulators as the state cracked down on non-compliant service providers. 
The Seychelles-based digital asset trading venue will pay $22 million as part of a settlement with the state of New York over a lawsuit alleging commodities and securities violations.&nbsp; 
The <a href="https://www.reuters.com/legal/crypto-exchange-kucoin-shut-new-york-pay-22-mln-settle-lawsuit-2023-12-12/" target="_blank" rel="noreferrer noopener">settlement</a> included $5.3 million in penalties paid directly to New York and $16.7 million worth of crypto reimbursements to some 177,800 resident investors. Additionally, KuCoin has agreed to shutter all its state operations completely.&nbsp; 
Despite the news, KuCoin’s exchange token <a href="https://crypto.news/price/kucoin/">KCS</a> saw double-digit gains, trading over $13.30 at press time. The token was a top gainer on Dec. 12, as <a href="https://crypto.news/kucoin-token-surges-32-in-24-hour-trading/" target="_blank" rel="noreferrer noopener">reported </a>by crypto.news. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="647" src="https://crypto.news/app/uploads/2023/12/Screenshot-104-1024x647.png" alt="KuCoin token data" class="wp-image-14226563">
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 KCS up double-digits in 24 hours | Source: CoinMarketCap
 </figcaption>
</figure> 
 You might also like: <a href="https://crypto.news/coingecko-reports-top-cexs-kucoin-falls-out-of-top-10/"> CoinGecko reports top CEXs, Kucoin falls out of top 10 </a> 
<h2 class="wp-block-heading" id="new-york-s-crackdown-on-kucoin-and-crypto">New York’s crackdown on KuCoin and crypto</h2> 
In March, New York Attorney General Letitia James <a href="https://crypto.news/nyag-says-ethereum-is-security-in-kucoin-lawsuit/" target="_blank" rel="noreferrer noopener">sued</a> KuCoin for running an unregistered commodities and securities exchange as it allowed New York investors to buy and sell cryptocurrencies on its platform without obtaining a regulatory license.&nbsp; 
James also said that Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>), crypto’s second-largest market cap token, counted as a security in the lawsuit.&nbsp; 
The suit was one of several litigation actions targeted at crypto companies suspected of operating illegally within the state of New York, in line with the Crypto Regulation, Protection, Transparency, and Oversight <a href="https://crypto.news/new-york-ag-proposes-nation-leading-crypto-regulation/" target="_blank" rel="noreferrer noopener">Act</a>. 
James had previously sued ex-Celsius CEO Alex Mashinsky and his fallen crypto titan for <a href="https://crypto.news/ny-attorney-general-to-sue-celsius-ex-ceo-for-fraud/" target="_blank" rel="noreferrer noopener">fraud</a>. CoinEx was <a href="https://crypto.news/coinex-faces-new-york-ban-ordered-to-pay-1-7m-in-penalties/" target="_blank" rel="noreferrer noopener">banned</a> from doing business in New York and paid $1.7 million in penalties to settle a lawsuit. 
The Attorney General’s office also accused Gemini, Genesis, and Digital Currency Group (DCG) of harming investors in a massive <a href="https://crypto.news/gemini-genesis-dcg-slammed-with-1b-crypto-fraud-lawsuit/" target="_blank" rel="noreferrer noopener">$1 billion crypto fraud lawsuit</a> in October 2023. DCG and CEO Barry Silbert said the suit was “baseless”. 
James and her office have often stressed the need to standardize crypto in the U.S. by implementing policies that guarantee safe conduct by operators while protecting digital asset users. 
 Read more: <a href="https://crypto.news/new-york-ag-proposes-nation-leading-crypto-regulation/"> New York AG proposes ‘nation-leading’ crypto regulation </a>

KuCoin to exit New York in $22m settlement

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