CoinEx Settles With NYAG and Banned From Operating in New York – CoinEx, a cryptocurrency exchange based in Hong Kong, has come to an agreement with the New York Attorney General’s office following a lawsuit filed against it in February 2023 for operating unlawfully. The agreement entails a payment exceeding $1.7 million and a prohibition on offering its services in New York.
The funds that have been recovered will be utilized for penalties and reimbursements to investors in New York. As outlined in a press release from the office of the New York Attorney General (NYAG), CoinEx has committed to returning more than $1.1 million to over 4,600 New York investors. Additionally, the exchange will be liable for paying $600,000 in penalties to the state of New York.
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Over the course of the next 90 days, users will have the option to receive their refunds directly in cryptocurrency from the exchange. As part of the agreement reached between CoinEx and the New York Attorney General’s (NYAG) office, the cryptocurrency firm will be subject to several restrictions. These include a prohibition on engaging in the offering, selling, or purchasing of securities and commodities in New York.
Additionally, the company will be barred from opening new accounts for customers located in the United States. To enforce these restrictions, CoinEx is required to implement geoblocking measures that limit access to the CoinEx platform specifically for IP addresses originating from New York. This ensures that users from New York will be unable to access the platform.
Commenting on the latest development, NYAG Letitia James said: “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring 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.”
Coin Cafe has been instructed by the New York Attorney General’s (NYAG) office to reimburse users with an amount surpassing $4 million. The reason behind this order is that the crypto company deceived investors by offering a supposedly “free” bitcoin wallet storage service, which turned out not to be free at all.
This recent development between CoinEx and the NYAG’s office resolves a lawsuit that was filed by the NYAG against the firm in February 2023. As previously reported, the regulatory authority in New York accused CoinEx of misrepresenting itself as a cryptocurrency exchange and unlawfully selling tokens that were labeled as securities and commodities without appropriate registration. Following the lawsuit, CoinEx promptly made the decision to discontinue its services in the US market.
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In the month of May, Attorney General James introduced a legislative proposal known as the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act. This proposed legislation aims to establish stricter regulatory measures for the cryptocurrency industry. Attorney General James holds the belief that the current absence of comprehensive crypto regulations leaves the industry vulnerable to fraudulent activities and other forms of criminal behavior.
