KuCoin $22M New York Enforcement Action Settlement

Individuals who bought or sold cryptocurrency on the KuCoin trading platform while in New York between 2017 and 2023 may be eligible to claim a cash payment from a class action settlement.

Mek Global Ltd. and PhoenixFin Pte Ltd., d/b/a KuCoin, agreed to pay $22,066,642 to resolve an enforcement action brought by the New York attorney general. The lawsuit alleged KuCoin unlawfully operated as an unregistered securities and commodities broker-dealer and misrepresented itself as an exchange in violation of New York's Martin Act and Executive Law. The settlement requires KuCoin to return approximately $16.77 million in account balances to eligible New York customers and pay $5.3 million to the state.

Who can file a claim?

The settlement includes individuals who bought or sold cryptocurrency on the KuCoin trading platform at any time from 2017 through 2023 and qualifies as a "New York customer" as defined by the consent order. New York customers include anyone who meets at least one of the following conditions:

• They conducted activity on the KuCoin platform from within or through New York.
• They have a current address in New York as indicated in KuCoin's records.
• They have a current phone number with a New York area code as indicated in KuCoin's records.
• They accessed KuCoin's website or mobile app from an IP address or GPS location associated with New York unless they completed KYC verification as a non-U.S. national or a U.S. national with non-New York identification
• They provided KYC verification information indicating New York presence to KuCoin.

Additional details

• Both individuals and entities can file a claim.
• Claimants must provide documentation to substantiate the claim by connecting depositing wallets via the online wallet connector and providing personal identification information.

How much can class members get?

The total amount available for distribution to eligible New York customers is approximately $16,766,642. Each eligible claimant will receive the value of assets (in fiat and/or cryptocurrency) held in their KuCoin account as of Nov. 29, 2023 (subject to verification). There is no fixed minimum or maximum award per person.

How to claim a KuCoin settlement payment

Eligible individuals may file a claim online or download, print and complete the PDF claim form and mail it to the claims administrator. The claim deadline is Feb. 28, 2029.

Claims administrator's mailing address: NYAG KuCoin Remediation, P.O. Box 25228, Santa Ana, CA 92799

Proof or documentation required to submit a claim

All claimants must provide documentation to substantiate the claim, including:

• Two valid forms of identification
• Connection of KuCoin depositing wallet(s) via the online wallet connector or exchange and/or wallet account information, such as screenshots or videos as proof of ownership, if unable to connect depositing wallets
• Any requested explanatory information or attestations
• Required personal identification information

Payout options

• In-kind cryptocurrency payment (for supported coins: AVAX, SOL, BTC, USDC, DOGE, XLM, ETH, XRP and SHIB)
• USDC stablecoin payment
• USD check

$22.07 million settlement fund

The $22,066,642 settlement fund includes:

• Payments to eligible class members: Up to $16,766,642
• Disgorgement to the office of the attorney general: $5,300,000

Important dates

• Deadline to file a claim: Feb. 28, 2029

When is the KuCoin New York settlement payout date?

The claims administrator will issue payments on a quarterly basis beginning in June 2026 and continuing through March 2029.

Why did this settlement happen?

The New York attorney general filed an enforcement action alleging KuCoin operated as an unregistered securities and commodities broker-dealer and misrepresented itself as an exchange in violation of New York's Martin Act and Executive Law. KuCoin admitted it operated a cryptocurrency trading platform on which users in New York could buy and sell cryptocurrencies that are securities or commodities under New York law without proper registration. It also admitted it represented itself as an exchange without being registered as one.

KuCoin agreed to pay $5.3 million to the state and return approximately $16.77 million in customer account balances to resolve the claims.

Sources

1. Claim form
2. Settlement website FAQ page