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NEW YORK, March 9 (Reuters) – New York’s lawyer common on Thursday sued KuCoin for failing to sign up with the state earlier than letting traders purchase and promote cryptocurrencies on its platform, as a part of her effort to rein in what she calls “shadowy” cryptocurrency firms.
Attorney General Letitia James stated the fourth-largest cryptocurrency platform violated the Martin Act, a formidable state securities regulation, by means of transacting in cryptocurrencies, promoting the product “KuCoin Earn” to generate source of revenue for itself and traders, and wrongfully calling itself an “exchange.”
In papers filed with a state courtroom in Manhattan, James is looking for an everlasting injunction to forestall KuCoin from working in New York till it complies with the regulation.
KuCoin didn’t instantly reply to requests for remark.
Launched in September 2017, KuCoin describes itself on its website online because the “People’s Exchange,” with greater than 27 million customers throughout 207 international locations and areas.
KuCoin trails Binance, Coinbase and Kraken in buying and selling quantity amongst cryptocurrency spot exchanges, in keeping with the knowledge corporate CoinMarketCap. It raised $150 million in a investment spherical remaining May, giving it a $10 billion valuation.
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James stated KuCoin has let traders industry standard digital currencies comparable to ETH, LUNA and TerraUSD, and that her case is likely one of the first by means of a regulator calling ETH a safety.
“One by one my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk,” James stated in a commentary.
Last month, James sued the CoinEx cryptocurrency platform for failing to sign up with the state.
In January, 10 states together with New York secured up to $24 million from the cryptocurrency corporate Nexo Inc, which additionally they accused of working illegally.
KuCoin is headquartered within the Seychelles. James stated its house owners are Mek Global Ltd, additionally primarily based within the Seychelles, and PhoenixFin PTE Ltd, primarily based in Singapore.
Reporting by means of Jonathan Stempel in New York; Editing by means of Diane Craft and Daniel Wallis
Our Standards: The Thomson Reuters Trust Principles.