Hong Kong Crypto Firm CoinEx Settles New York State Lawsuit, Paying $1.7 Million in Refunds and Penalties
In a significant development, a prominent Hong Kong-based cryptocurrency company has resolved a legal dispute with New York State Attorney General (AG) Letitia James, resulting in over $1.7 million being paid in investor refunds and penalties.
The lawsuit, initiated by James in February, accused the trading platform CoinEx of operating as a securities and commodities broker-dealer without proper registration, as well as falsely representing itself as a legitimate cryptocurrency exchange.
In a recent press release, the attorney general announced that CoinEx has agreed to pay refunds amounting to more than $1.1 million to 4,691 investors in New York. Additionally, the company will pay over $600,000 in penalties to the state, effectively resolving the lawsuit.
CoinEx had already made the decision to withdraw from the US market prior to the resolution of the lawsuit, and the agreement now solidifies the platform’s exit from New York. As part of the settlement, CoinEx will implement geoblocking measures to prevent individuals with New York IP addresses from accessing its services.
Letitia James, who has held the position of New York’s AG since 2018, has been actively targeting the cryptocurrency industry, claiming to have recovered more than $500 million from digital asset companies for their violations of state regulations.
Commenting on the settlement, James emphasized the risks posed by unregistered crypto platforms to investors, consumers, and the overall economy. She warned other cryptocurrency companies that disregarding New York’s laws would result in severe consequences. James reaffirmed her office’s commitment to cracking down on such companies that deceive investors, flout regulations, and endanger New Yorkers.
This resolution serves as a stern reminder to the crypto industry that compliance with state laws is of utmost importance, and any negligence can lead to significant financial and reputational repercussions.
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.