NYAG lists Ethereum (ETH) as security in lawsuit against Kucoin
The New York Attorney General Letitia James has sued the crypto exchange – Kucoin. The AG claims that Kucoin violated the Martin Act in three ways, with the first one being offering and purchasing unregistered securities and commodities. Here, AG James claims Ethereum (ETH) to be a security.
The lawsuit stated,
“Petitioner seeks a permanent injunction to end the ongoing illegal activities of Mek Global Limited and Phoenixfin PTE Ltd., both doing business as KuCoin (hereinafter collectively referred to as “KuCoin”) (…) in violation of General Business Law (“GBL”) § 352 et seq. (the “Martin Act”) and Executive Law”
The NYAG also alleges that the crypto exchange violated securities law through its Kucoin Earn – a lending and staking service. In addition, the lawsuit asserts that Kucoin failed to register with the SEC and CFTC. Moreover, the exchange failed to disclose information related to its activities in the state even despite the OAG issuing a subpoena.
Notably, the attorney general wants Kucoin to stop operating in New York via the lawsuit, along with blocking its website till it complies with the law of the land. A press release on the same read,
“a court order that stops KuCoin from misrepresenting that it is an exchange, prevents the company from operating in New York, and directs KuCoin to implement geo-blocking based on IP addresses and GPS location to prevent access to KuCoin’s mobile app, website, and services from New York.”
Moreover, in her case against the crypto exchange, AG James brands Ethereum (ETH), Terra (LUNA, and UST as securities. The AG used the Howey Test to classify them as securities. The NYAG demonstrated that the coins fulfilled all four criteria. The press release said,
“This action is one of the
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