May 20, 2024
Latest Cryptocurrency News

CoinEx Banned from Operating in New York, Assets Worth $1.7M Seized

CoinEx, a crypto exchange based in Hong Kong, has been barred from operating in New York by Attorney General Letitia James. In an announcement made on June 15, it was revealed that the exchange’s funds worth more than $1.7 million were seized due to alleged failure to register as a securities and commodities brokerage.

According to the announcement, the agreement settles a previous lawsuit filed in February, in which CoinEx was accused by the state of New York of falsely representing itself as an exchange and not registering with local authorities.

The announcement states, “As part of today’s consent order, CoinEx is prohibited from offering, selling, or purchasing securities and commodities in New York and is not allowed to make its platform available in the state.”

Under the terms of the agreement, over $1.1 million will be returned to 4,691 investors in New York, and a sum of more than $600,000 will be paid as penalties to the state. Additionally, CoinEx must implement measures to block access from IP addresses in New York, and it is forbidden to create new accounts for customers in the United States.

Attorney General James stated in the announcement, “Today’s agreement should serve as a warning to crypto companies that there are significant consequences for disregarding New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”

Users of CoinEx will have the opportunity to recover their crypto funds directly from the exchange within the next 90 days. After this period, eligible investors can request funds in fiat currency by emailing coinexrefund@ag.ny.gov. The announcement explains that investors will be refunded with either cryptocurrency or cash equivalents held in their accounts as of April 25, 2023.

On February 22, CoinEx was sued by Attorney General James in the New York Supreme Court for allegedly engaging “in repeated and persistent fraudulent practices” and violating the state’s Martin Act, one of the most stringent anti-fraud laws in the country. The complaint by James classified several tokens, including Amp (AMP), LBRY Credits (LBC), Rally (RLY), and Terra (LUNA), as both commodities and securities.

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