KuCoin has agreed to pay $22 million to the State of New York.
The $22 million penalty is broken up into two parts: $6.5 million as a civil penalty and $15.5 million as restitution to wronged New York investors.
The $15.5 million will be held in escrow with the New York Attorney General’s office for the benefit of New York residents until it is determined how to distribute the funds.
KuCoin must also provide a list of all New York residents who had accounts with the exchange, along with their related account balances, within 30 days.
As part of the agreement, KuCoin also agrees not to engage in any activities related to securities or commodities in New York without proper registration or authorization from the state.
Failure to comply with any terms of the consent order may result in further penalties or actions by the state.
In a statement to the press, New York Attorney General Letitia James emphasized the importance of holding cryptocurrency exchanges accountable for their actions.
