- The lawsuit was filed by the New York Attorney General’s Office.
- They call it an “attempt to curb” crypto firms
New York Attorney General Letitia James has announced that she is suing the popular crypto exchange KuCoin. The reason given is “illegal activity in its jurisdiction.” The official added that this is their “eighth attempt to curb shady cryptocurrency platforms that defy laws and put New Yorkers at risk.”
Moreover, prosecutor James points out in the lawsuit that the Ethereum cryptocurrency, like LUNA or UST, are “unregistered securities.” She motivates this by the fact that such projects promise future profits to those who invest in them.
Such a lawsuit could mean serious problems for the brainchild of Vitalik Buterin. But the New York City Attorney’s opinion is not legally binding in and of itself. Moreover, yesterday the head of the CFTC, Rostin Behnam, expressed a different opinion. He believes that stablecoins and Ethereum need to be regulated like commodities.
The case will be taken to court. Details of the claim can be found in the official document.
The new lawsuit against KuCoin will not give the crypto market a break. And there has been more and more bad news lately. Previously, the US Securities and Exchange Commission, chaired by Gary Gensler, filed legal cases against Kraken, Binance and many other market participants.