New York Attorney General Letitia James announced that she has reached an agreement with Hong Kong-based virtual currency trading platform CoinEx.
The New York Attorney General’s Office (AG) announced that it has reached an agreement with CoinEx. Letitia James’ office sued the company on the grounds that CoinEx did not register in the state.
New York Attorney General Letitia James Announces Agreed With CoinEx
New York Attorney General Letitia James announced that she has reached an agreement with Hong Kong-based virtual currency trading platform CoinEx. James’ office sued the company on the grounds that CoinEx had not registered in the state.
Under the agreement, CoinEx will reimburse approximately 5,000 New York investors for a total of $1.2 million and will pay more than $600,000 in penalties. The company is prohibited from offering securities and commodities in New York and using its platform in the state.
Attorney General James stated that unregistered crypto platforms pose risks to investors, consumers and the economy. He stressed that the agreement should show crypto companies that violating New York law has serious consequences, adding that they will continue to audit crypto companies.
This year, James’ office stepped up its crackdown on the crypto industry and introduced bills that could force customers to refund victims of fraud. He also sued KuCoin along with former Celsius CEO Alex Mashinsky.
The state of New York has one of the strictest regulatory regimes for crypto companies in the US, with BitLicense overseen by the state’s Department of Financial Services.
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