New York Attorney General Letitia James announced that her office reached a settlement with the Hong Kong-headquartered cryptocurrency platform CoinEx for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.
Under the terms of the agreement, CoinEx will issue more than $1.1 million in refunds to New York investors and pay more than $600,000 in penalties to the state. CoinEx was also banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state.
After the settlement was concluded, CoinEx announced it would withdraw its platform and services from the U.S.
“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” said James. “Today”™s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York”™s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”
