- NYAG mentioned that CoinEx has failed to register as a broker-dealer.
- CoinEx users can recover crypto funds directly from the exchange over the next 90 days.
CoinEx, the Hong Kong-based crypto exchange, has been banned from operating in New York by Attorney General Letitia James. NYAG mentioned that the crypto exchange has failed to register as a broker-dealer. So the authorities shut down the crypto exchange.
🚨There are serious consequences for ignoring New York laws.
— NY AG James (@NewYorkStateAG) June 15, 2023
As a result of our lawsuit, cryptocurrency platform @coinexcom 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. https://t.co/U3wkdfHu3o
On June 15, the NYAG announced that it had shut down the Hong Kong-based crypto exchange CoinEx in New York. Moreover, NYAG mentioned that CoinEx has falsely represented itself as a crypto exchange.
The NYAG’s Lawsuit Against CoinEx
According to the report, the NYAG has seized the crypto exchange’s fund of over $1.7 million for allegedly failing to register as a securities and commodities brokerage. However, previously, the NYAG filed a lawsuit against the crypto exchange in February. The New York attorney general alleged that it falsely represented itself as an exchange and failed to register with local authorities.
As a result, the crypto exchange has banned from offering, selling, or purchasing securities and commodities in New York and prohibited from making its platform available in the state. According to the agreement, 4,691 New York investors will receive a refund of over $1.1 million, while the state will receive fines totaling more than $600,000.
Letitia James, New York Attorney General stated
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.
Moreover, CoinEx users can recover crypto funds directly from the exchange over the next 90 days. Adding to that, CoinEx not permitted to open any new accounts for U.S. customers, and current U.S. customers only permitted to withdraw their cryptocurrency from the site.
