Coin Cafe has been ordered to release $4.3 million to the customers, which was collected by the firm from the customers forcibly via unfair rules.
Coin Cafe is a Bitcoin firm and this firm was established in 2013. In 2015, this firm applied for a crypto license in New York & finally secured the license in Jan of this year. However, it took a very long time for this crypto firm to secure a license in NewYork but it was able to provide its services throughout NewYork.
On 18 May 2023, New York State Attorney General Letitia James disclosed that the Coin Cafe exchange allegedly charges a very high amount of fees for providing Bitcoin holding & trade services for customers.
The report noted that Coin Cafe defrauded hundreds of people in NewYork & other state’s customers.
Allegedly this crypto firm collected an undisclosed amount of funds in the form of transaction & service fees. In some of the cases, Coin Cafe drained $100 of dollars worth of funds from the customer’s account, as a part of a service charge.
Coin Cafe has been ordered to release $4.3 million to the customers, as compensation for the alleged fraud that the company did against them.
Reportedly Coin Cafe was charging 9.7% of the total funds & in some cases $99 per month against the customers, in case customers showed no trading activity in a month.
James said that such types of bad activities by the crypto firms are showing that the crypto sector needed to be regulated perfectly to prohibit such unfair advantages that some crypto companies are taking.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.