Coinex, a cryptocurrency exchange, has recently settled a legal dispute with the New York State Attorney General. The exchange has agreed to pay $1.7 million in penalties and refunds as part of the settlement. Additionally, Coinex will no longer be allowed to operate in the state of New York and has announced its decision to exit the entire US market.
The initial lawsuit was filed by Letitia James, the attorney general of New York, in late February 2023. The allegations against Coinex included offering unregistered securities and operating an unregistered exchange. The Attorney General’s Office found that Coinex was offering unregistered securities in New York.
After a little over three months, Coinex reached a settlement with the Attorney General’s Office, agreeing to pay the mentioned penalties and refunds. The exchange’s operations in New York are now prohibited, and it has expressed its intention to withdraw from the entire United States. Letitia James emphasized that the main goal of the Attorney General’s Office is to protect investors in New York and hopes that this settlement will serve as a valuable lesson to other crypto companies.
Letitia James stated, “Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy. 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.”
In a similar fashion, the Attorney General’s Office filed a lawsuit against Kucoin in March, classifying ethereum (ETH) as an unregistered security in that case. Furthermore, in May, the AG Office obtained $4.3 million from Coin Cafe, a Brooklyn-based crypto firm, for deceptive practices towards investors.
This settlement between Coinex and the New York Attorney General comes amidst heightened enforcement efforts by the U.S. Securities and Exchange Commission (SEC) during the same period.
Feel free to share your thoughts and opinions on the Coinex settlement with the New York Attorney General in the comments section below.
Frequently Asked Questions (FAQs) about cryptocurrency exchange settlement
What is the settlement between Coinex and the New York Attorney General about?
Coinex, a cryptocurrency exchange, has reached a settlement with the New York Attorney General regarding allegations of offering unregistered securities and operating an unregistered exchange.
How much is Coinex required to pay as part of the settlement?
Coinex has agreed to pay $1.7 million in penalties and refunds as part of the settlement with the New York Attorney General.
What are the consequences for Coinex as a result of the settlement?
As part of the settlement, Coinex is barred from operating its platform in the state of New York and has announced its decision to exit the entire US market.
What is the stance of the New York Attorney General regarding unregistered crypto platforms?
The New York Attorney General emphasizes that unregistered crypto platforms pose risks to investors, consumers, and the broader economy. They state that there are significant consequences for crypto companies that ignore New York’s laws and put New Yorkers at risk.
Are there any similar cases filed by the New York Attorney General?
Yes, the New York Attorney General’s Office has filed similar lawsuits against other crypto companies, such as Kucoin, regarding the offering of unregistered securities. They are actively taking action against crypto companies that disregard the law.
How does this settlement align with the US Securities and Exchange Commission’s (SEC) enforcement efforts?
The settlement between Coinex and the New York Attorney General coincides with the heightened enforcement efforts initiated by the SEC during the same period, indicating a broader crackdown on regulatory compliance in the cryptocurrency industry.
More about cryptocurrency exchange settlement
- Press release from the New York State Attorney General’s Office
- New York Attorney General Letitia James’ official website
- U.S. Securities and Exchange Commission (SEC) official website