Celsius

United

April

Read

James

<p class="is-style-lead">Following a lawsuit, CoinEx, a cryptocurrency platform, has been prohibited from conducting operations in both New York and the US. </p>



<p>The firm was then ordered to pay $1.7 million in penalties and refunds to affected individuals in New York.</p>



<h2 class="wp-block-heading" id="an-agreement-reached">An agreement reached</h2>



<p>CoinEx, the cryptocurrency platform, has reached an agreement to settle a lawsuit that was filed against it in February by the state of New York.&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">🚨There are serious consequences for ignoring New York laws.<br><br>As a result of our lawsuit, cryptocurrency platform <a href="https://twitter.com/coinexcom?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@coinexcom</a> is banned from operating in New York and the rest of the country and will pay $1.7 million in penalties and refunds for impacted New Yorkers. <a href="https://t.co/U3wkdfHu3o" target="_blank">https://t.co/U3wkdfHu3o</a></p>&mdash; NY AG James (@NewYorkStateAG) <a href="https://twitter.com/NewYorkStateAG/status/1669370312717107200?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 15, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>In February, New York Attorney General Letitia James had filed a lawsuit against cryptocurrency exchange CoinEx, accusing the company of falsely representing itself as an exchange and failing to register as a securities and commodities broker-dealer in the state. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">I&#39;m suing cryptocurrency platform <a href="https://twitter.com/coinexcom?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@coinexcom</a> for illegally operating in New York without registering with the state.<br><br>⏰Wake-up call: crypto platforms must play by the same set of rules as everyone else.</p>&mdash; NY AG James (@NewYorkStateAG) <a href="https://twitter.com/NewYorkStateAG/status/1628517511497916416?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">February 22, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>The lawsuit, filed in the New York Supreme Court, alleges that CoinEx engaged in fraudulent practices and violated the strict Martin Act, which governs anti-fraud and securities regulations in the United States.&nbsp;</p>



<p>The Attorney General also highlighted that CoinEx listed tokens such as amp (AMP), LBRY credits (LBC), rally (RLY), and terra (LUNA), which she considers both commodities and securities.</p>



<p>Today&#8217;s announcement, stated that CoinEx has been banned from engaging in the offering, selling, or purchasing of securities and commodities in New York, and its platform will no longer be accessible in the state. </p>



<p>According to the agreement, a total of $1.1 million will be refunded to 4,691 investors from New York, while over $600,000 will be paid as penalties to the state.</p>




    <p>
        You might also like:

        <a href="https://crypto.news/trader-sentiment-falls-to-a-three-year-low/">
            Trader sentiment falls to a three-year low        </a>
    </p>




<p>In addition, CoinEx is required to implement geo-blocking measures to restrict access from New York IP addresses, and the creation of new accounts for U.S. customers is strictly prohibited.</p>



<p>During the next 90 days, CoinEx users will have the opportunity to retrieve their crypto funds directly from the exchange. After this period, eligible investors can request fiat currency refunds by contacting coinexrefund@ag.ny.gov. </p>



<p>The refund process will cover cryptocurrency or cash equivalents held in accounts as of April 25, 2023, as outlined in the official announcement.</p>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe title="Regulators Have No Love for Bitcoin or Crypto: Saylor" width="1020" height="574" src="https://www.youtube.com/embed/AjX4twBYBzA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<h2 class="wp-block-heading" id="more-stringent-regulations">More stringent regulations</h2>



<p>This comes just over a month after James announced the need for more stringent regulations on the cryptocurrency sector through the CRPTO Act. </p>



<p>The new legislation was intended imposing more stringent regulations on the cryptocurrency sector to protect consumers, investors, and the overall economy and would require crypto companies to undergo independent auditing, disclose financial statements, and establish mechanisms to compensate clients in case of fraudulent activities.</p>



<p>Amid the most recent regulatory crackdown, the introduction of a nation-leading regulation might be what the industry needs to continue blockchain development amid fears of being shut down by the SEC.</p>




    <p>
        Read more:

        <a href="https://crypto.news/celsius-users-will-be-allowed-to-swap-altcoins-for-btc-and-eth/">
            Celsius users will be allowed to swap altcoins for BTC and ETH        </a>
    </p>

CoinEx faces New York ban, ordered to pay $1.7m in penalties

Table of Contents

crypto.news

Other articles published on Jun 15, 2023

The 2nd WEMIX AMA Recap with WEMADE CEO Henry Chang

What’s Happening with Tether? USDT Loses Dollar Peg!

Arbitrum Bears Fight to Keep the Token Under $1- Here’s How

Binance goes for bitcoin cloud mining despite regulatory uncertainty

Polygon price in red, PEPE surges, and tradecurve shows bullish patterns

DWF Labs and TRON Reach Strategic Partnership to Strengthen Ecosystem Support

Join our free newsletter for daily crypto updates!