NEW YORK, Feb 22 (Reuters) – CoinEx was sued on Wednesday by New York Lawyer Common Letitia James, who accused the cryptocurrency alternate of transacting enterprise illegally as a result of it didn’t register with the state.
In papers filed with a New York state court docket in Manhattan, James accused CoinEx of getting “engaged in repeated and protracted fraudulent practices.”
She stated CoinEx’s failure to register as a commodity broker-dealer, securities dealer or securities supplier earlier than shopping for and promoting tokens violated the Martin Act, a robust state regulation used to battle monetary fraud.
James additionally stated CoinEx held itself out with out state permission as a world cryptocurrency “alternate,” and failed final month to conform along with her subpoena for testimony about its digital asset buying and selling actions.
“The times of crypto firms like CoinEx performing like the foundations don’t apply to them are over,” James stated in a press release.
CoinEx didn’t instantly reply to requests for remark.
The Hong Kong-based firm was based in 2017 and is often known as Vino World Ltd, in keeping with court docket papers.
James’ civil lawsuit seeks restitution, and a ban on entry to CoinEx’s cellular app, web site and companies from New York.
In January, New York and 9 different U.S. states secured up to $24 million from the cryptocurrency firm Nexo Inc and an affiliate to resolve civil claims they transacted with out correct registration and lied about their registration standing.
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