CoinEx Settles With NYAG, Banned From Operating in New York

After being sued for operating illegally in February 2023, CoinEx, a Hong Kong-based cryptocurrency exchange, reached an agreement with the New York Attorney General’s Office, which includes a payment of more than $1.7 million and a ban from offering its services in New York.

The refunds will go into penalties and refunds for New York investors.

CoinEx recovers more than $1 million

in press release From the New York Attorney General’s Office (NYAG), CoinEx agreed to pay more than $1.1 million to more than 4,600 investors in New York and pay an additional $600,000 in fines to the state of New York. The refund will happen over the next 90 days when users can redeem crypto funds directly from the exchange.

The agreement between CoinEx and the NYAG bureau would also prohibit the crypto company from offering, selling or buying securities and commodities in New York and prohibit the company from opening new accounts for clients in the United States. Access to the CoinEx platform for New York IP addresses.

Commenting on the latest development, NYAG Letitia James said:

Today’s agreement should serve as a warning to cryptocurrency companies that there are dire consequences for ignoring New York laws. My office will continue to crack down on crypto companies that brazenly ignore the law, mislead investors, and put New Yorkers at risk.”

The NYAG office recently ordered Coin Cafe to refund more than $4 million to users on the grounds that the crypto company defrauded investors with its “free” bitcoin wallet storage service, which was not free.

NYAG wants stricter cryptocurrency regulations

The development between CoinEx and the NYAG office is settling a lawsuit the latter filed against the company in February 2023. As previously reported by Potato encryptionThe New York regulator claimed that CoinEx falsely presented itself as a cryptocurrency exchange and sold tokens as securities and commodities without proper registration.

Shortly after the lawsuit, CoinEx announced that it was withdrawing its services from the US market.

In May, Attorney General James proposed legislation called the Crypto Regulation, Protection, Transparency, and Control Act (CRPTO) that would see stricter regulatory policies for the cryptocurrency industry. James believes that the lack of strong cryptographic rules makes the industry vulnerable to fraud and other criminal activities.