New York State has sued Seychelles-based cryptocurrency exchange KuCoin for the sale of unregistered securities and commodities.
New York Attorney General’s Office filed a lawsuit against cryptocurrency exchange KuCoin yesterday evening. Attorney General Letitia James In the lawsuit filed under the leadership of KuCoin, KuCoin selling unregistered securities and commodities was put forward. This case is the first case in which the regulator claims that Ethereum (ETH) is a security.
State authorities have denied that KuCoin, which violates securities laws, New York to cease operations and until the necessary responsibilities against the law are fulfilled. blocking access to the website demanded:
KuCoin operates in New York without permission. We hold them accountable and take strong steps to protect investors.
In his statement on the subject, Attorney General James stated that they will take turns against similar entities in the cryptocurrency industry and will not allow anyone to publicly violate the law. Ethereumsin the forgotten petitionTerra (LUNA) And TerraUSD (UST) It was characterized as a product traded for profit by comparing with:
Ethereum, like LUNA and UST, is a speculative asset that relies on the efforts of third-party developers to generate profits for ETH holders. Therefore, KuCoin needed to register before selling ETH, LUNA or UST.
In addition to the lawsuit filed against KuCoin KuCoin Earn presented in the name staking It was emphasized that the services also have a security status, that it needs to be registered, but the exchange continues its services without this registration. A similar warning about staking services coinbase also came to the market.
According to CoinGecko data, in the last 24 hours 8.3% depreciating ETH, at the time of writing at $1,411 is being traded.