New York Attorney General Recovers $1.7 Million from CoinEx for Operating Illegally

blockchain.news:

New York Attorney General Letitia James has successfully recovered over $1.7 million from CoinEx (COINEX) following a lawsuit against the cryptocurrency platform. CoinEx was found to be operating without the necessary registration as a securities and commodities broker-dealer and falsely representing itself as a crypto exchange. The resolution of the lawsuit requires CoinEx to refund more than $1.1 million to New York investors and pay over $600,000 in penalties to the state.

As part of the consent order, CoinEx is now banned from offering securities and commodities transactions in New York and prohibited from providing its platform in the state. In response to the lawsuit, CoinEx has publicly announced its withdrawal from the United States. Attorney General James has been actively working to enhance oversight and regulation of cryptocurrency companies to safeguard New York investors, resulting in over $500 million recovered from the cryptocurrency industry.

Attorney General James stressed the risks associated with unregistered crypto platforms, highlighting the importance of compliance with New York's laws. She reiterated her commitment to crack down on crypto companies that disregard the law, deceive investors, and put New Yorkers at risk.

CoinEx, a Hong Kong-based virtual currency trading platform, allowed investors to buy and sell cryptocurrency without registering as a securities and commodities broker-dealer, a requirement under New York law. An investigation conducted by the Office of the Attorney General (OAG) confirmed that individuals with New York-based IP addresses could easily access and utilize CoinEx's services.

Under the terms of the settlement, CoinEx is obliged to provide full refunds totaling