- CoinEx is not registered as a stock or commodity broker!
- The exchange will pay a fine of $600,000!
- In addition, he will have to return $1.1 million to investors!
The CoinEx cryptocurrency exchange is shutting down its operations in the United States. Attorney General Letitia James has demanded more than $1.7 million from CoinEx for not being registered as a stock or commodity broker, as well as for providing false information about its status as a cryptocurrency exchange. Now, CoinEx must stop its activity in the US, pay fines and return the money to investors.
Under the New York attorney general’s decision, the exchange must return $1.17 million to 4,691 investors, in addition to paying $600,000 in penalties. The document also establishes that the exchange is prohibited from operating in the state. During the next 90 days, investors will have the opportunity to receive compensation in the form of cryptocurrency directly from CoinEx. All funds will be returned in the equivalent amount of the cryptocurrency they had in their accounts as of April 25, 2023.
“Unregistered cryptocurrency platforms pose a risk to investors, consumers, and the broader economy. This agreement is a warning to cryptocurrency companies about the potential serious consequences that result from violating New York laws. My office will continue to enforce the law against cryptocurrency companies that blatantly break the law, mislead investors and endanger New York residents” – said Letitia James.
CoinEx responded to the lawsuit and publicly announced that it will withdraw its platform and services from the US.
It should be noted that the New York attorney general filed a lawsuit against the exchange in February and demanded a complete ban on operations in the state.
