New York AG Suing Ku Coin Exchange: Investor Risks on the Rise

– The New York Attorney General Leticia James is suing Ku Coin, a digital currency company, for failing to register as a security and commodities broker-dealer and misrepresenting itself as a crypto exchange.
– New York has historically been very anti-crypto, implementing the BitLicense in 2015 and recently imposing a two-year moratorium on crypto mining operations.
– In her statement, James said that her office was taking action against these companies in order to bring order to the industry.

New York AG Suing Ku Coin Exchange

The New York Attorney General Leticia James is pursuing legal action against Ku Coin, accusing the digital currency company of falsely representing itself as an exchange and failing to properly register as a security and commodities broker-dealer.

New York’s Anti-Crypto History

New York has had an antagonistic attitude towards cryptocurrency businesses since 2015 when it introduced the BitLicense which imposed heavy fees and documentation requirements on them. This was followed by a two year moratorium on crypto mining operations that only use non clean energy sources.

Leticia James‘ Statement

In response to her suit against Ku Coin, James issued a statement saying that her office is taking action against these companies in order to bring order to the industry and ensure all companies operating in New York follow state laws and regulations.

FTX – A Warning Sign?

FTX stands as evidence of shady crypto companies seeking to take advantage of customers. It’s unclear whether or not James‘ actions are intended solely for revenue or if they are meant to protect consumers from fraudulent practices within the industry.

Conclusion

While it may be easy for some people criticize James‘ stance on cryptocurrencies, she is ultimately doing what she believes is necessary in order to protect consumers from potential fraudsters within the industry.