On March 9, 2023, New York attorney general Letitia James announced that her office had once again cracked down on crypto platforms by filing a lawsuit against the Seychelles-based crypto exchange Kucoin. Members of the Office of the Attorney General (OAG) were able to purchase crypto assets, despite the exchange not being registered in the state. In addition to the lawsuit, James and the OAG insist that the second-largest crypto asset by market capitalization, ethereum, is a security.

Why Ethereum Is Considered a Security According to New York’s OAG

Two weeks ago, New York attorney general Letitia James and the Office of the Attorney General (OAG) filed a lawsuit against Coinex. On Thursday, the OAG filed a lawsuit against the crypto trading platform Kucoin. The charges against Kucoin include failing to register as a securities and commodities broker-dealer and falsely representing itself as an exchange. James detailed that through the action, she hopes to ban Kucoin from operating in New York and said it was her latest enforcement action to “rein in cryptocurrency platforms.”

The lawsuit also details that the crypto assets ethereum (ETH), terra (LUNA), and terrausd (UST) are securities. “The petition argues that 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,” the complaint’s press release details on Thursday. Because the state of New York’s OAG believes these crypto assets are securities, Kucoin failed to register as a licensed broker in the state. The lawsuit itself explains why it defines ethereum ( Go to Source to See Full Article
Author: Jamie Redman

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