- NYAG mentioned CoinEx didn’t register as a broker-dealer.
- CoinEx customers can withdraw their crypto funds instantly from the alternate for the following 90 days.
Hong Kong-based cryptocurrency alternate CoinEx has been banned from working in New York by Lawyer Normal Letitia James. NYAG mentioned the cryptocurrency alternate didn’t register as a broker-dealer. So the authorities closed the cryptocurrency alternate.
🚨 There are critical penalties for ignoring New York regulation.
Because of our lawsuit, cryptocurrency platforms @coinexcom can be banned from working in New York and different states and pays $1.7 million in fines and refunds to affected New Yorkers. https://t.co/U3wkdfHu3o
— NY AG James (@NewYorkStateAG) June 15, 2023
On June 15, NYAG introduced that it had closed Hong Kong-based New York-based cryptocurrency alternate CoinEx. NYAG additionally mentioned CoinEx is misrepresenting itself as a cryptocurrency alternate.
NYAG Lawsuit Towards CoinEx
In keeping with the report, the NYAG seized greater than $1.7 million in cryptocurrency alternate funds for failing to register as a securities and commodities dealer. Nevertheless, this comes after the NYAG filed a lawsuit in opposition to the cryptocurrency alternate in February. The New York State Lawyer Normal claimed the corporate falsely claimed to be an alternate and didn’t register with native authorities.
In consequence, cryptocurrency exchanges Banned The state of New York prohibits the providing, sale or buy of any securities or commodities, and prohibits the platform from being made out there throughout the state of New York. Below the settlement, 4,691 New York state traders will obtain greater than $1.1 million in refunds, whereas the state will face fines totaling greater than $600,000.
New York State Lawyer Normal Letitia James mentioned:
Moreover, CoinEx customers can withdraw their crypto funds instantly from the alternate for the following 90 days. As well as, CoinEx is just not allowed to open new accounts for US prospects and present US prospects are solely allowed to withdraw cryptocurrencies from the location.
(Tag translation) CoinEx