In an effort to monitor and enforce financial regulations, Attorney General Letitia James sued KuCoin in March for failing to register with the state before allowing investors to trade cryptocurrencies on its platform.
This landmark settlement means KuCoin will block New York users from accessing its platform and pay a massive $22 million to settle the lawsuit.
This amount includes $5.3 million going to the state and a refund of $16.7 million in cryptocurrency to 177,800 affected New York investors.
Following the announcement of the agreement between KuCoin and the state of New York, the platform’s native token, KCS (KuCoin Token), has experienced a notable increase in its value in the cryptocurrency market.
According to official data provided by CoinMarketCap , the price of KCS rose to $12.89, marking a rise of 21.20% in a single day.
This rise adds to a broader bullish trend, with growth of 33.20% in the last week and a staggering 108.11% increase over the course of the last month.
These data reflect the positive impact that the announcement of the agreement had on the market perception towards the KuCoin token, generating a significant increase in its valuation.
In addition to the KuCoin case, more statements emerged from Attorney General Letitia James
James stated that cryptocurrency companies must comply with the same rules as other financial institutions .
This is in addition to a series of legal actions that his office has taken against other major players in the crypto market , such as Genesis Global, Digital Currency Group, Gemini and CoinEx.
The KuCoin case comes as regulators and law enforcement agencies in the United States are stepping up efforts to combat fraud, money laundering, and a lack of investor protection in the cryptocurrency space. cryptocurrencies.
The move is just one of many ongoing actions aimed at enforcing regulation in an increasingly surveilled market.
Despite being one of the largest cryptocurrency exchanges globally, KuCoin ranks behind giants like Binance, Coinbase, and Kraken in terms of traffic, liquidity, and trading volume.