There is an interesting development in the cryptocurrency market today. A Bitcoin exchange has been banned. In addition, their funds were confiscated. Let’s look at the details of the news.
Banned from Bitcoin exchange
The NYAG announced that CoinEx was shut down for not registering as a broker-dealer and “falsely representing itself as a crypto exchange.” Hong Kong-based Bitcoin exchange CoinEx has been banned from operating in New York by Attorney General Letitia James. More than $1.7 million in funds from the exchange have been confiscated, the Attorney General’s office announced on June 15. There’s a reason the funds were confiscated. Alleged failure to register as a securities and commodities brokerage. As we mentioned as Kriptokoin.com, there was a lawsuit against CoinEx in February. Accordingly, this is the result of a previous case in which the state of New York accused it of falsely promoting itself as a stock exchange and failing to register with local authorities.
“As part of today’s lawsuit decision, Bitcoin exchange CoinEx is prohibited from offering, selling or buying securities and commodities in New York,” the announcement said. It is also prohibited from making its platform available in the state.” has expressions. Under the ruling, more than $1.1 million will be refunded to 4,691 New York investors. The company will also pay the state more than $600,000 in penalties.
What’s in the details?
Also, CoinEx has to implement geo-blocking to block access to New York IP addresses. Bitcoin exchange CoinEx is also prohibited from creating new accounts for US customers. James also makes very clear emphases in his decision. These highlights are as follows.
“The outcome of today’s lawsuit is a warning to Bitcoin and cryptocurrency companies that ignoring New York laws will have dire consequences. Our court will continue to crack down on crypto companies that blatantly disregard the law, mislead investors and put New Yorkers at risk.”
CoinEx users will be able to redeem their crypto funds directly from the exchange for the next 90 days. At the end of this period, eligible investors will be able to receive funds in fiat currency by sending an email to [email protected]. According to the announcement, investors will be able to return cryptocurrencies or cash equivalents held in accounts as of April 25, 2023. James filed a lawsuit against Bitcoin exchange CoinEx in the New York Supreme Court on February 22. The allegations included “repeated and persistent fraudulent practices”. There was also an alleged violation of the state’s Martin Law, one of the strictest anti-fraud laws. James also made a different emphasis in the complaint. Amp had handled various tokens, including LBRY Credits, Rally (RLY), and Terra LUNA. Accordingly, he classified them as “both commodities and securities”.
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