CoinEx Settles Lawsuit and Departs from the U.S.

Jun 16, 2023

온라인 슬롯 사이트

Cryptocurrency exchange CoinEx is leaving the U.S. due to the increasingly hostile legal environment.

Cryptocurrency Exchange CoinEx to Leave U.S. After New York Lawsuit

Cryptocurrency platform CoinEx, based in Hong Kong, has with the state of New York and will wind down its operations in the United States. New York State Attorney General Letitia James had filed a lawsuit against CoinEx earlier this year due to the company’s failure to register appropriately.

Cryptocurrency platform CoinEx will wind down its U.S. operations after reaching a settlement with New York

— The Wall Street Journal (@WSJ)

CoinEx’s Violations and the Lawsuit

CoinEx misrepresented itself as a cryptocurrency exchange and failed to register as a securities and commodities broker-dealer. By not being registered with the Commodities Futures Trading Commission or the SEC, CoinEx was found to be in violation of the Martin Act, a law established in 1921 that prohibits selling securities without registration.

Settlement Details and Consequences

As part of the settlement announced on Thursday, CoinEx will hand over approximately $1.8 million, including refunds to customers affected by their actions. By admitting to the allegations and settling the lawsuit, the company has resolved the issue of its failure to register as a broker-dealer in New York.

Refunds and Additional Fine

CoinEx will refund the cryptocurrency holdings of its New York-based customers. Additionally, the company will pay an extra fine of over $600,000, as outlined in the settlement agreement.

CoinEx’s Commitments and Withdrawal from the U.S.

As part of the settlement, CoinEx has agreed to stop providing its platform and services in New York. The company will implement geoblocking measures to prevent access from New York-based internet users. Furthermore, the crypto exchange will cease onboarding new clients from the United States, and existing clients will no longer be able to make new deposits.

🚨There are serious consequences for ignoring New York laws.

As a result of our lawsuit, cryptocurrency platform is banned from operating in New York and the rest of the country and will pay $1.7 million in penalties and refunds for impacted New Yorkers.

— NY AG James (@NewYorkStateAG)

New York Attorney General’s Actions

Attorney General Letitia James has been proactive in taking legal action against cryptocurrency companies. Her office has recovered more than $500 million from the industry due to violations of New York laws. Last month, she proposed a bill to state legislators to enhance her authority in regulating the cryptocurrency sector, including requirements for audits, financial statements, and fraud protection.

My office has now recovered over $500 million from the cryptocurrency industry for violating New York laws.

We will continue to protect New York investors and ensure that cryptocurrency companies play by the same rules as everyone else.

— NY AG James (@NewYorkStateAG)

Strong Stance on Cryptocurrencies

Attorney General Letitia James has taken a strict stance on cryptocurrencies, warning the public about the risks associated with investing in them and pursuing legal action against companies that violate state laws. She emphasized that this settlement with CoinEx serves as a warning and demonstrates the significant consequences of disregarding New York’s regulations.

Conclusion

CoinEx’s settlement with the New York Attorney General’s Office marks the end of its operations in the United States. The company will pay refunds to affected customers and face penalties for its failure to comply with registration requirements. This settlement serves as a reminder to cryptocurrency companies that disregarding New York’s laws will lead to significant consequences.

Check out the latest Crypto News news bellow: