Hong Kong-based crypto exchange CoinEx is banned from doing business in New York state according to its settlement with the New York Attorney General’s office. 

New York Attorney General Letitia James said that the settlement recovered $1.7 million from CoinEx after it failed to register as a securities and commodities broker-dealer in New York. Of this amount, $1,172,971.50 will go towards refunds to CoinEx investors and more than $600,000 will cover penalties levied by the state. James described the settlement as “a warning to crypto companies” that fail to follow New York laws. 

“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” James said in her statement. “My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”

CoinEx was initially sued by the New York Attorney General in February. In a 38-page filing, the office alleged that CoinEx “engaged in repeated and persistent fraudulent practices” in violation of New York’s Martin Act. The law is considered to be one of the toughest anti-fraud laws in the United States.  

The 1921 law was found to apply to virtual currencies, which were deemed commodities under its terms, in a Go to Source to See Full Article
Author: Nicholas Morgan

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