- CoinEx has no registration as a securities and commodities broker-dealer
- The exchange will pay a fine of $600,000
- It must return another $1.1 to investors
Cryptocurrency exchange CoinEx terminates operations in the United States. Attorney General Letitia James recovered more than $1.7 million from CoinEx for not being registered as a securities and commodities broker-dealer and for providing false information regarding its status as a cryptocurrency exchange. CoinEx must now halt operations in the U.S., pay fines and refund investors.
According to the New York attorney general, the exchange must refund 4,691 investors $1.17 million and pay another $600,000 in fines. The document also states that the exchange is prohibited from operating in the state of. For the next 90 days, investors will have the opportunity to receive a cryptocurrency refund directly from CoinEx. Each will be refunded the equivalent of the cryptocurrency they held in their accounts as of April 25, 2023.
“Unregistered cryptocurrency platforms pose risks to investors, consumers and the overall economy. The current deal is a warning to cryptocurrency companies of the possible serious consequences that come with violating New York laws. My office will continue to bring justice to cryptocurrency companies that shamelessly break laws, mislead investors and endanger New Yorkers,” said Letitia James.
CoinEX has responded to the lawsuit and publicly announced that it will withdraw its platform and services from the US.
It should be noted that the New York attorney general filed a lawsuit against the exchange back in February and demanded a complete ban on operations in the state.