New York authorities ban CoinEx from the state


The New York State Attorney General’s Office (NYAG) banned Hong Kong-based crypto exchange CoinEx for operating without a license, imposing penalties of about $1.7 million.

According to the statement, the company refused to “register as a broker-dealer in securities and commodities” and also “falsely positioned” itself as a cryptocurrency trading platform.

The agency demanded that CoinEx reimburse 4,691 local investors more than $1.1 million and pay fines in excess of $600,000.

Reports of legal proceedings between the exchange and NYAG appeared in February. Then the platform asked users to withdraw funds by April 24.

“Today’s agreement should serve as a warning to crypto companies that ignoring laws has serious consequences. The office will continue to pursue digital asset platforms that blatantly defy the law, mislead investors, and put New Yorkers at risk,” the state said.

According to the court order, CoinEx must enable appropriate geo-blocking by IP address. The Company is also prohibited from creating new accounts for US customers.

Old users will be able to withdraw assets within 90 days after the introduction of restrictions. After this period, they must send an email requesting a fiat refund.

Recall, on June 15, Tether reported that NYAG granted CoinDesk access to court documents on the 2021 process.

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