The New York State Office of the Attorney General (OAG) has filed a lawsuit against KuCoin for allegedly violating securities laws by offering tokens without a license.
According to the document, the platform was not registered as a broker-dealer and "falsely represented itself as an exchange." The authorities' claims also refer to the KuCoin Earn product.
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According to the office holder, Letitia James:
"[...] my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk."
The list of assets that the OAG considers securities includes Ethereum.
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James has stated:
"ETH, just like LUNA and UST, is a speculative asset that relies on the efforts of third-party developers in order to provide profit to the holders of ETH. Because of that, KuCoin was required to register before selling ETH, LUNA, or UST."
The Attorney General's Office has found that KuCoin operated without proper authorization "in many jurisdictions, including the Seychelles, Canada and the Netherlands."