CoinEx Exchange Falls Under Ban in New York, $1.7M in Crypto Assets Confiscated

CoinEx Exchange has been banned in New York, which led the authorities to seize $1.7 million in crypto assets. The ban indicates regulatory actions against the exchange due to non-compliance or violations of local regulations.

A crypto asset seizure underscores authorities’ efforts to address illegal activities or risks associated with the exchange’s operations.

CoinEx Faces Legal Action in New York for Unregistered Crypto Exchange

A broker-dealer registration exemption was denied to CoinEx by the NYAG “falsely representing itself as a cryptocurrency exchange.”

New York Attorney General Letitia James has banned CoinEx’s operations in New York. Due to CoinEx’s alleged failure to register as a securities and commodities brokerage.

A CoinEx announcement on June 15 said over $1.7 million worth of the exchange’s funds had been seized for allegedly not registering.

CoinEx settled a lawsuit filed by the New York attorney general in February. CoinEx was sued for not registering with the proper authorities and falsely claiming to be an exchange. As a result of this resolution, CoinEx and the attorney general’s office are no longer at odds.

Under the settlement terms, CoinEx agreed to pay a $6 million penalty and register with the relevant state and federal authorities. They also agreed to implement a comprehensive compliance program to ensure they adhere to applicable laws and regulations.

As part of today’s consent order, CoinEx is banned from offering, selling or purchasing securities and commodities in New York and is prohibited from making its platform available in the state,

According to the announcement.

New York Regulatory Action Resolved with CoinEx Agreeing to Investor Refunds and Penalties

In the agreement, 4,691 New Yorkers will get a refund of around $1.1 million, and the state will get a penalty of $600,000.

Furthermore, CoinEx must block access from New York IP addresses. US customers can’t open new accounts on the exchange either.

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.

CoinEx users have a 90-day window to retrieve their cryptocurrency funds from the exchange. Fiat currency refunds are available afterward coinexrefund@ag.ny.gov is the email address to use. As stated in the announcement, the refund covers cryptocurrency or cash equivalents held as of April 25, 2023.

James filed suit against CoinEx on Feb. 22, alleging “repeated and persistent fraudulent practices” and violating the Martin Act, one of the country’s most rigid anti-fraud laws.

Many tokens are commodities and securities, like Amp AMP, Terra LUNA, LBRY Credits (LBC), and Rally (RLY). The company denies any wrongdoing and says it follows all laws and regulations. The case will be decided soon.

Read more: 

• N.Y. crypto exchanges not safe says state’s top cop
• New York Passes Bill To Ban Proof-Of-Work Crypto Mining