Crypto exchange KuCoin is set to withdraw from the New York market, reaching a $22 million settlement in response to a lawsuit filed by the state earlier this year, as reported by Reuters. New York Attorney General Letitia James initiated legal action against KuCoin in March, alleging violations of the state's laws and identifying ether and other tokens as unregistered securities listed by KuCoin in the state.

As part of the settlement, KuCoin will pay $5.3 million to the state and provide a cryptocurrency refund totaling $16.7 million to 177,800 New York investors, according to Reuters. In a statement, James emphasized that crypto companies must adhere to the same regulatory standards as traditional financial institutions.

New York, known for its active role in shaping crypto regulations, recently issued guidance through the Department of Financial Services to enhance the listing and delisting procedures for crypto firms. This move follows the state's ongoing efforts to regulate the industry more effectively. Other crypto companies, including Bitfinex and Tether, have faced scrutiny in New York, with the former settling for $18.5 million in 2021 after a two-year dispute. In October, Attorney General James filed a sweeping lawsuit against crypto entities Gemini, Genesis, and Digital Currency Group, accusing them of defrauding investors. KuCoin has not yet responded to requests for comment.