New York Bans CoinEx Exchange, Seizes $1.7 Million Worth Of Crypto Assets

Jun. 15, 2023
New York Bans CoinEx Exchange, Seizes $1.7 Million Worth Of Crypto Assets

Hong Kong-based crypto exchange, CoinEx, has been banned from continuing its services in New York by State Attorney General Letitia James. As per a statement released on June 15, more than $1.7 million in the company’s funds were sized because it was operating illegally due to its failure to register with the state.

The fund included refunds of $1.1 million to 4,691 investors. Meanwhile, this refund payout may be reduced if clients withdraw their digital assets during the stipulated 90-day period.

However, the remaining $600,000 will go to pay state penalties. After this period, eligible clients can withdraw their assets in fiat currencies by emailing [email protected].

CoinEx is Tether-based and primarily trades USDT and BTC, with no USD pairings. The New York State Department of Financial Services found that the company was not a licensed crypto platform. It led to an immediate ban on CoinEx’s operations within the region.

As a result of the settlement of the case filed by the New York attorney, CoinEx agreed to pay $1.7 million and ban its operations. The settlement was submitted to NY State Court in Manhattan on Wednesday and awaits a judge’s approval.

Its terms specify that the exchange is prohibited from selling, buying, and offering commodities and securities in New York. Also, CoinEx cannot make its platforms accessible to New Yorkers. Despite the settlement agreement, CoinEx didn’t admit any wrongdoing.

A Warning To Crypto Platforms

James said unregistered crypto firms threaten consumers, investors, and the broader economy.

In a press release, she stated:

‚ÄúToday‚Äôs agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York‚Äôs laws.‚ÄĚ

She added that team will continue to fight crypto companies that defy the law, defraud investors, and put New Yorkers at risk.

On February 22, CoinEx was sued by James in the New York Supreme Court for violating the Martin Act by not registering with the state. Established in 1921, this act makes it illicit for anyone to offer securities as a dealer or broker without registration.

US Commodities Futures Trading Commission Chair, Gary Gensler, has also tightened control over the crypto space. Recently, the financial regulator filed a lawsuit against crypto exchanges, Coinbase and Binance for allegedly operating as unregistered exchanges.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.

RELATED STORIES

MORE ON NEWS

RELATED STORIES

MORE ON NEWS