Hong Kong-based cryptocurrency exchange CoinEx has accepted a fine from the New York Attorney General’s (NYAG) that it will reimburse more than $1.1 million. The crypto company was sued for illegal activity in February 2023.
NYAG decides to refund cryptocurrency exchange CoinEx
CoinEx has agreed to reimburse more than 4,600 New York investors of more than $1.1 million, according to the New York Attorney General’s (NYAG) statement. The cryptocurrency exchange will also pay an additional penalty of $600,000 to the state of New York.
The central crypto exchange was sued for illegal activity in February 2023. Now, the final decision from NYAG obliges the exchange to pay users directly. According to the official announcement, CoinEx will have 90 days to pay.
The agreement between CoinEx and the NYAG office will also prohibit the crypto firm from offering, selling or buying securities and commodities in New York and the company from opening new accounts for customers in the US. Commenting on the latest development, NYAG Letitia James says:
Today’s deal should serve as a warning to crypto companies that ignoring New York laws has dire consequences. My office will continue to put pressure on crypto companies that brazenly disregard the law, mislead investors and put New Yorkers at risk.
New York wants tougher regulations
The NYAG office recently ordered Coin Cafe to refund over $4 million to users on the grounds that the crypto firm was defrauding investors with its “free” Bitcoin wallet storage service, which is not free. The latest development between CoinEx and NYAG once again reflects the state’s tough stance.
The $1.1 million fine against CoinEx concludes a lawsuit the NYAG filed against the firm in February 2023. The New York regulator claimed that CoinEx was deceptively promoting itself as a cryptocurrency exchange. However, securities claimed to be selling tokens. As you follow on Kriptokoin.com, on June 5, Binance was sued for the same reasons.
Today, the SEC filed civil claims against https://t.co/AZwoBOgsqS in what is the latest example of regulation by enforcement under the current Commission. To be clear, we believe the lawsuit is baseless and we intend to defend ourselves vigorously. However, we want to address…
— Binance.US 🇺🇸 (@BinanceUS) June 5, 2023
Shortly after the lawsuit, CoinEx announced that it would withdraw its services from the US market. In May, Attorney General James proposed legislation called the Crypto Regulation, Protection, Transparency and Oversight (CRPTO) Act, which would see stricter regulatory policies for cryptocurrencies. James argues that the lack of robust crypto rules makes the industry prone to fraud and other criminal activities.
Robinhood case
Last April, the California Department of Financial Protection and Innovation fined Robinhood $10.2 million. Behind the penalty was the exchange’s improper actions during the COVID-19 crisis. Together with other penalties, the total amount that the exchange has to pay reaches 30 million dollars.
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