The New York State Attorney General’s Office (OAG), represented by its head, Letitia James, filed a lawsuit against KuCoin. A cryptocurrency exchange has been accused of violating securities laws by offering tokens without a license.
According to the post, the platform was not registered as a broker-dealer and was “falsely presenting itself as an exchange.” The claims of the authorities also concern the KuCoin Earn product.
The list of assets that OAG considered securities includes Ethereum. This is the first time that the regulator has said this in court, according to a press release.
The Attorney General’s Office found that KuCoin operated without proper authorization “in many jurisdictions, including the Seychelles, Canada and the Netherlands.” In December 2022, the Central Bank was the last to warn consumers that the company provides services in the country without the necessary registration.
Earlier, the Ontario Securities Commission warned against interacting with the crypto exchange. In 2021, the regulator accused the structures associated with the platform of non-compliance with local laws and banned its work.
The OAG lawsuit is aimed at terminating the activities of the exchange in New York, blocking access to the website, services and mobile application.
On Feb. 22, James sued CoinEx for illegally running a business without being registered with the state. Later, the media reported on the decision of the exchange to stop serving customers from the United States.
Prior to this, Kraken had problems with regulators. The company agreed to close the staking program for US users and pay $30 million in fines.
Starting April 1, the Nexo crypto lending platform will stop offering the Earn Interest Product to U.S. investors.
In February, SEC Chairman Gary Gensler hinted at the recognition of cryptocurrencies other than bitcoin as securities.