Crypto Exchange CoinEx Banned in NY, $1.7M Assets Seized


Crypto Exchange CoinEx Banned in NY, $1.7M Assets Seized
Attorney General Letitia James has barred CoinEx, a crypto exchange headquartered in Hong Kong, from conducting operations in New York. The recent announcement on June 15 revealed that approximately $1.7 million worth of funds belonging to CoinEx were confiscated due to the exchange's purported failure to register as a securities and commodities brokerage.

This development marks the resolution of a previous lawsuit that had been filed against CoinEx in February. During that legal proceeding, the New York attorney general had accused the exchange of deceptive practices by misrepresenting itself as a legitimate trading platform and neglecting to comply with the requisite registration protocols mandated by local authorities.

The recent announcement states that CoinEx has been subjected to a consent order, resulting in a ban on its ability to engage in the offering, selling, or purchasing of securities and commodities within New York. Furthermore, the exchange is prohibited from making its platform accessible to individuals residing in the state.

Under the terms of the agreement, a sum of over $1.1 million will be refunded to 4,691 investors based in New York. Additionally, the state will receive penalties amounting to more than $600,000.

Additionally, CoinEx is required to establish geo-blocking measures to restrict access from IP addresses located in New York. Moreover, the exchange is explicitly prohibited from opening any new accounts for customers residing in the United States.

Attorney General Letitia James emphasized the significance of the agreement, stating that it should serve as a cautionary message to other cryptocurrency companies. She asserted that substantial consequences await those who choose to disregard the laws of New York. Furthermore, she reaffirmed her office's commitment to taking decisive action against crypto companies that brazenly flout regulations, deceive investors, and jeopardize the welfare of New Yorkers.

Over the course of the next 90 days, CoinEx users will have the opportunity to reclaim their crypto funds directly from the exchange. Following this timeframe, eligible investors will be able to request refunds in fiat currency by reaching out to via email. As outlined in the announcement, investors will be reimbursed with either cryptocurrency or cash equivalents corresponding to the balances held in their accounts as of April 25, 2023.

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