The KuCoin cryptocurrency exchange has been sued by the New York Attorney General’s Office for failing to register in the state, with the prosecutor referring to ETH, LUNA and UST as securities.
The Attorney General, Letitia James, filed a lawsuit in the New York Supreme Court, alleging that local law enforcement was able to buy and sell cryptocurrencies on the KuCoin exchange, despite the platform not being registered as a broker-dealer with the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC), and also not having a license to conduct this activity in the state.
As a result, the Seychelles-based trading platform has been accused of violating the law. James also highlighted the KuCoin Earn loan program, which offers interest payments, in her complaint.
The lawsuit further states that the crypto assets ETH, LUNA and UST traded on the exchange are considered speculative assets and securities, with their value being dependent on the efforts of third-party developers looking to provide profit to their holders.
In response to these allegations, the Attorney General is seeking an injunction against KuCoin in New York and has demanded that the site implement a geo-blocking of local IP addresses.
She emphasized that all New Yorkers and businesses must comply with the state’s laws and regulations, and that KuCoin operated in New York without registration, which is why they are taking action against the company.
It is worth noting that earlier in February, James also sued the CoinEx crypto exchange, alleging it engaged in illegal activities.
The Prosecutor General has previously stated that law enforcement officers will continue to identify unregistered cryptocurrency services that should be closed.