Attorney General bans CoinEx from operating in New York

The attorney general announced that the cryptocurrency exchange platform will not be able to continue operating in the town

CoinEx, a Hong Kong-based cryptocurrency exchange, has been banned by Attorney General Letitia James from operating in the state of New York. According to a statement issued on June 15, more than $1.7 million worth of funds from the exchange were seized due to its alleged failure to register as a securities and commodities brokerage.

This settlement resolves a previous lawsuit filed in February by the state of New York against CoinEx, accusing the platform of falsely presenting itself as an exchange and failing to register with local authorities.

The statement states: “As part of the consent order issued today, CoinEx is prohibited from offering, selling or buying securities and commodities in New York, and is also prohibited from making its platform accessible in the state”.

Under the terms of the agreement, more than $1.1 million will be returned to 4,691 New York investors, and a fine of more than $600,000 will be paid to the State in penalties.

Additionally, CoinEx is required to implement geo-blocking measures to prevent access from IP addresses located in New York. You are also prohibited from creating new accounts for US customers.

Attorney General James noted in the statement: “This settlement today should serve as a warning to cryptocurrency companies that they will face dire consequences if they ignore New York law. My office will continue to crack down on those cryptocurrency companies that defy blatantly violate the law, mislead investors and put New Yorkers at risk.”

K. Tovar

Source: Cointelegraph

(Reference image source: ilgmyzin, Unsplash)

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