New York Attorney General Sues KuCoin

[bbc.reporter]

The skeptical me is beginning to speculate that there is a coordinated attack against the cryptospace. Within 7 days we witnessed what was assumed a market dump of 49,000 coins by the American government, a fud on Binance, rumor that the SEC are sending wells notices to all Defi project founders located in the USA and presently New York AG vs. Kucoin. This is very head shaking. The market appears to have been okay, however.



The New York Attorney General's office today filed a lawsuit against cryptocurrency exchange KuCoin for allegedly violating securities and commodities laws in the state.

The NYAG's lawsuit targets KuCoin for allegedly “falsely representing itself as an exchange” when really it is a “securities and commodities broker-dealer.” It aims to block access to the exchange in New York by forcing KuCoin to geo-fence its website based on IP addresses and GPS location.

Read in full https://decrypt.co/123102/new-york-attorney-general-kucoin-ethereum-security

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[Oshosondy]

It's not today's news, it was 2 days ago news, there was even a related discussion about it on this forum a day ago.

https://bitcointalk.org/index.php?topic=5444207.msg61886494#msg61886494

The skeptical me is beginning to speculate that there is a coordinated attack against the cryptospace.

This is not the first time, but know that those centralized platforms are causing the attack. What is centralized can be controlled, the more decentralized things are, the lesser the control can be.

The market appears to have been okay, however.

Did you check the market ever since that has been reported? The market have crashed very well to the extent that bitcoin dumped below $20000. Bitcoin is even still better, altcoins dumped most and massively.

The NYAG's lawsuit targets KuCoin for allegedly “falsely representing itself as an exchange” when really it is a “securities and commodities broker-dealer.” It aims to block access to the exchange in New York by forcing KuCoin to geo-fence its website based on IP addresses and GPS location.

That won't be a problem and I do not see it as a downfall for Kucoin, US do not accept foreign exchanges, Kucoin should stop doing that.

[Husires]

It's not today's news, it was 2 days ago news, there was even a related discussion about it on this forum a day ago.

https://bitcointalk.org/index.php?topic=5444207.msg61886494#msg61886494

The title of the topic was somewhat strange or far from KuCoin issue even that the topic was moved to the altcoin board (NYAG declares ETH as a Security,) so creating another topic would be useful, especially if new developments occurred in this issue.

"One by one my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk," James said in a statement.

According to James's statement, it is the beginning and they will not stop soon. So we'll hear a lot.

[bbc.reporter]

The skeptical me is beginning to speculate that there is a coordinated attack against the cryptospace.

This is not the first time, but know that those centralized platforms are causing the attack. What is centralized can be controlled, the more decentralized things are, the lesser the control can be.

I am sorry if I did not make the post quite clear for you. I will try to create a clearer one next time.

What I was trying to tell everyone was the recent bad news we were reading, the rumors of wells notices and the 49k coins of bitcoin deposits to Coinbase made by wallets controlled by the American government, assumed for dumping, have been appearing like something coordinated to bring the price down. It was not organic selling.

[The Sceptical Chymist]

It's not today's news, it was 2 days ago news, there was even a related discussion about it on this forum a day ago.

Still, I guess I missed the other thread and I'm kinda glad OP started up this one. 

Wasn't NY supposed to be the new "crypto capitol" a while back?  There was somebody who was even going to rent an entire block and try to turn it into a bunch of bitcoin-related businesses.  Whatever their status is, the state's actions speak loud and clear that they're very much pro-regulation, and I'd say they're going too hard with this one.

Not surprising I guess, since NY was one of the first states to be on Binance's blacklist, and you can't even use instant exchanges like ShapeShift if your IP is from New York (are they even still around?).  I'm giving two middle fingers to the Empire State, and no offense to DaveF or anyone else who lives there who might be reading this.

[NotATether]

Wasn't NY supposed to be the new "crypto capitol" a while back?  There was somebody who was even going to rent an entire block and try to turn it into a bunch of bitcoin-related businesses.  Whatever their status is, the state's actions speak loud and clear that they're very much pro-regulation, and I'd say they're going too hard with this one.

Or possibly pro-fiat, considering that every major bank and payment network has a headquarters of some sort in a New York skyscraper or tower.

Not surprising I guess, since NY was one of the first states to be on Binance's blacklist, and you can't even use instant exchanges like ShapeShift if your IP is from New York (are they even still around?).  I'm giving two middle fingers to the Empire State, and no offense to DaveF or anyone else who lives there who might be reading this.

Probably cheaper to just drive to new jersey or some nearby state when you want to do a bunch of crypto-related transactions? Entire journey from going to returning should only take a few hours max assuming there are no traffic jams.

[Woodie]

But how does this really work..here in the crypto space where we have experts in the field know very well that all these crypto assets are simply utility tokens and have never been classified as securities and then somebody from the outside comes to tell us that these are not what they seem to be and should be categorised as securities... guess this goes with jurisdiction.

And why put all the weight on Kucoin, why not give the people to choose whats  bad and what's good.. geofencing is a temporary fix and won't stop someone who is determined to access these services.

[bbc.reporter]

It's not today's news, it was 2 days ago news, there was even a related discussion about it on this forum a day ago.

Still, I guess I missed the other thread and I'm kinda glad OP started up this one.  

Wasn't NY supposed to be the new "crypto capitol" a while back?  There was somebody who was even going to rent an entire block and try to turn it into a bunch of bitcoin-related businesses.  Whatever their status is, the state's actions speak loud and clear that they're very much pro-regulation, and I'd say they're going too hard with this one.

Not surprising I guess, since NY was one of the first states to be on Binance's blacklist, and you can't even use instant exchanges like ShapeShift if your IP is from New York (are they even still around?).  I'm giving two middle fingers to the Empire State, and no offense to DaveF or anyone else who lives there who might be reading this.

It was only assumed to be the crypto capitol because everyone also speculated that what regulations the state of New York might create, the other states might follow. It did not occur as speculated, however. What really occurred was New York was only isolated from the cryptospace and it appears that the Biden administration also wants to isolate the whole country.

This is head shaking because much of the protocols that are being created in the cryptospace Defi category have the quality of avoiding regulations hehe.

[Darker45]

I wonder how much market New York provides KuCoin, but if it isn't that big, if I were KuCoin, I'd rather not go through all the legal hassles and block New York residents from the platform. Surely, KuCoin's market is not solely dependent on New York.

On the other hand, is there an official pronouncement or directive from the SEC that Ethereum, among others, is to be classified as securities? For now, it seems everything is but mere interpretations and yet lawsuits are already filed against Kraken, KuCoin, and others on this claim or assumption. Why don't they first let SEC decide on this once and for all and file a case on that basis?

[Saisher]

I wonder how much market New York provides KuCoin, but if it isn't that big, if I were KuCoin, I'd rather not go through all the legal hassles and block New York residents from the platform. Surely, KuCoin's market is not solely dependent on New York.

Being one of the top centralized exchanges in the industry they can still do better without New Yorkers they have the data and if NewYork is not their biggest market then they have to let it go, I'm sure the majority of investors are trading on Kucoin, they can always find a new market to explore 

On the other hand, is there an official pronouncement or directive from the SEC that Ethereum, among others, is to be classified as securities? For now, it seems everything is but mere interpretations and yet lawsuits are already filed against Kraken, KuCoin, and others on this claim or assumption. Why don't they first let SEC decide on this once and for all and file a case on that basis?

So the case is already in place, in case SEC classified it as securities, prosecutors are like this they preempt before the official ruling of a case so they will just use the official ruling to advance their case, so when SEC rules marked Ethereum and others as securities they use the ruling to strengthen the case.