- CoinEx is not registered as a broker-dealer in securities and commodities
- The exchange will pay a fine of $600,000
- Another $ 1.1 she must return to investors
Cryptocurrency exchange CoinEx stops activities in the United States. Attorney General Letitia James has recovered more than $1.7 million from CoinEx for not registering as a securities and commodities broker-dealer and for misrepresenting its status as a cryptocurrency exchange. Now CoinEx is obliged to stop working in the US, pay fines and return money to investors.
According to the decision of the Attorney General of New York, the exchange must return $1.17 million to 4,691 investors, and pay another $600,000 in fines. The document also states that the exchange is prohibited from operating in the state. Over the next 90 days, investors will have the opportunity to receive crypto refunds 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 a risk to investors, consumers and the overall economy. The current deal is a warning to cryptocurrency companies about the possible serious consequences that come with violating the laws of New York. My office will continue to bring justice to crypto companies that shamelessly break laws, mislead investors, and endanger New Yorkers.Letitia James said.
CoinEX responded to the lawsuit and publicly announced that it would withdraw its platform and services from the US.
It should be noted that the Attorney General of New York filed a lawsuit against the exchange back in February and demanded a complete ban on operations in the state.