NY Attorney General Sues KuCoin for Alleged Violations of Securities and Commodities Laws

The KuCoin cryptocurrency exchange is being sued by the New York Advocate General's office for reportedly breaking state securities and commodities rules. Attorney General Letitia James asserts that Ethereum (ETH), is the second-largest cryptocurrency by market value, as well as Terra (LUNA) and TerraUSD (UST) stocks.

KuCoin allegedly misrepresented itself as an exchange when it is actually a broker-dealer for commodities and stocks. The complaint seeks to geo-fence KuCoin's website based on IP addresses and GPS positions in order to prevent entry to the exchange in New York.

Based on the “confidence score,” Seychelles-based KuCoin is the fifth-largest cryptocurrency market globally and the 17th-largest based on 24-hour trading activity. The business once billed itself as “the most sophisticated and safe bitcoin platform,” but in 2020 it was the victim of a $150 million breach.

In this case, it is claimed that the fact that holders of ETH can profit financially qualifies it as an asset. Since Ethereum switched to a proof-of-stake network last year, owning ETH immediately correlates to receiving staking compensation. A person can possibly make more compensation the more BTC they risk.

Given the focus that marking services have gotten from authorities, the timeliness of the case is noteworthy. Popular American exchange Kraken has recently assessed a $30 million punishment by the SEC for supposedly breaking stock laws with its holding product. Gary Gensler, the chairman of the SEC, has frequently stated in public that the SEC only views Bitcoin as a non-security, but has suggested that Ethereum may be on the Commission's watch.

The NYAG's action is the most recent in a ruthless assault on the cryptocurrency sector by American officials. Following the abrupt demise of the once-dominant FTX crypto exchange and the arrest of its creator, the SEC has intensified its enforcement efforts and legislators and lawmakers have increased their anti-crypto statements.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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