CoinEx Exchange Banned In New York, Authorities Recover $1.7 Million

Attorney General Letitia James has issued a ban on CoinEx, a Hong Kong-based cryptocurrency exchange, prohibiting its operations within the state of New York. The ban follows an announcement on June 15 revealing that the exchange’s funds, totaling over $1.7 million, were seized.

The seizure was conducted due to allegations of CoinEx’s failure to register as a securities and commodities brokerage, as required by regulation in the United States. A proposed settlement was recently filed in a New York state court in Manhattan, awaiting the judge’s approval.

The settlement outlines the terms and conditions for CoinEx, the Hong Kong-based cryptocurrency exchange. Specifically, the exchange would be barred from offering, selling, or purchasing securities and commodities in New York.

Furthermore, CoinEx is prohibited from granting access to its platform to individuals residing in the state. The settlement proposal addresses the regulatory issues related to CoinEx’s operations in New York and establishes a framework for resolving the legal conflict.

CoinEx Settled Without Admission Of Wrongdoing

Once the settlement receives the judge’s approval, its terms will be finalized and enforced accordingly. As part of the proposed settlement, CoinEx would be required to make a payment that consists of several components.

Firstly, $1.17 million would be allocated for refunds distributed among 4,691 investors. However, it should be noted that if any of these investors choose to withdraw their crypto within a specified 90-day period, the refund amount may be reduced.

Additionally, CoinEx would be subject to a fine amounting to $626,000. This financial penalty addresses the alleged violations and serves as a deterrent for future non-compliance. These payment components are integral to the proposed settlement and reflect the restitution to affected investors and the imposition of a monetary penalty on CoinEx.

The announcement read,

As part of today’s consent order, CoinEx is banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state.

Despite agreeing to the settlement

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Author: anushsamal

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