According to a press release issued on June 15 by the Office of the New York State Attorney General, the cryptocurrency exchange Coinex has reached a settlement with Letitia James, the chief law enforcement officer. The attorney general stated that Coinex will pay $1.7 million in penalties and refunds and is barred from operating its platform in the state.
Crypto Exchange Coinex Settles Legal Battle With NY Attorney General
In late February 2023, Letitia James, the attorney general (AG) of New York, filed a lawsuit against Coinex, a cryptocurrency exchange. The allegations included the offering of unregistered securities and operating an unregistered exchange. As per the initial complaint, the AG’s Office discovered that unregistered securities were obtainable from Coinex in New York.
A little over three months later, Coinex has reached a settlement with the AG, agreeing to pay $1.7 million in penalties and refunds. Consequently, the exchange is now prohibited from operating in New York, and Coinex has expressed its plans to withdraw from the entire United States. James emphasized that the primary objective of the AG’s Office is to safeguard investors in New York, and she hopes that this settlement serves as a valuable lesson.
“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy,” James said. “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”
In a parallel fashion in March, the AG’s Office filed a lawsuit against Kucoin, adopting a similar approach. Notably, the state’s chief law enforcement officer classified ethereum (ETH) as an unregistered security in that particular case. Furthermore, in May, the AG Office successfully obtained $4.3 million from Coin Cafe, a crypto firm based in Brooklyn, for its deceptive practices towards investors.
The crackdown led by James and her office has coincided with the heightened enforcement efforts initiated by the U.S. Securities and Exchange Commission (SEC) during the same period.
What do you think about the settlement between Coinex and the New York attorney general? Share your thoughts and opinions about this subject in the comments section below.