Attorney General Letitia James said the fourth-largest cryptocurrency platform violated the Martin Act, a powerful state securities law, by transacting in cryptocurrencies, selling the product “KuCoin Earn” to generate income for itself and investors, and wrongfully calling itself an “exchange.”
In papers filed with a state court in Manhattan, James is seeking a permanent injunction to stop KuCoin from operating in New York until it complies with the law.
KuCoin did not immediately respond to requests for comment.
Launched in September 2017, KuCoin describes itself on its website as the “People’s Exchange,” with more than 27 million users across 207 countries and regions.
KuCoin trails Binance, Coinbase and Kraken in trading volume among cryptocurrency spot exchanges, according to the data company CoinMarketCap. It raised $150 million in a funding round last May, giving it a $10 billion valuation.
James said KuCoin has let investors…
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