KuCoin has reached a $22 million settlement with the state of New York and promised to stop serving users in the area, according to an order filed with the Supreme Court earlier today.。The cryptocurrency exchange is accused of offering, selling and buying cryptocurrencies as securities and commodities, in violation of New York State law.。

KuCoin has pleaded guilty to the charges, agreeing to pay $5.3 million and undertake specific obligations, including terminating New York users' access to its services for a specified period of time, stopping the creation of accounts and restricting existing accounts from being used only for withdrawal purposes.。

KuCoin also pledged to return current account balances held by clients in New York, worth about $16.7 million in fiat and cryptocurrency.。The return process includes assistance with withdrawals and the transfer of the remaining balance to a third-party fund manager for subsequent distribution to affected users。

KuCoin agrees to stop service in New York

KuCoin's compliance with the agreement includes a commitment to cease operations with users in the region, ensuring strict compliance with the terms and conditions of the consent order。

In March, New York Attorney General Letitia James filed a lawsuit against KuCoin.。She accused the exchange of operating illegally in New York state。The lawsuit marks a pivotal moment as it is the first time that regulators have listed ether and other cryptocurrencies as securities under the Martin Act.。

The lawsuit alleges that KuCoin provided unregistered securities through its KuCoin Earn product, a lending and mortgage service.。The New York State Attorney General's Office confirmed the case by interacting with the platform using New York IP addresses, conducting transactions and demonstrating the platform's operational involvement.。