CoinEx Actively Addresses NY Crypto Lawsuits

CoinEx says it is taking steps to address allegations that it is operating illegally in New York.

The crypto exchange did it announcement Thursday (February 23), a day after New York Attorney General Letitia James sued CoinEx for selling unregistered digital assets in the state.

The lawsuit, which seeks court permission to bar CoinEx from doing business in the state, is the latest example of law enforcement authorities shining a harsher light on the crypto sector.

“Given the recent lawsuit against CoinEx for allegedly operating an unregistered cryptocurrency exchange, we are paying close attention to the allegations and are taking active steps to immediately address the New York Attorney’s concerns,” the company said on Twitter.

CoinEx did not provide details on what those steps were. PYMNTS has contacted the company for comment, but has yet to receive a response.

According to the lawsuit, the attorney general’s office was able to buy and sell crypto on Coinbase in New York, even though the exchange is not registered with the state.

“Our laws are designed to protect New Yorkers, and when companies ignore them, they put citizens, investors and businesses at risk,” said Attorney General Letitia James. “The days of crypto companies like CoinEx acting like the rules don’t apply to them are over.”

CoinEx said in its announcement that it has “always placed great emphasis on regulatory compliance” and aims to become a “safe and reliable cryptocurrency exchange.”

James’ office has taken a number of actions against the crypto industry over the past year. In January, she sued former Celsius CEO Alex Mashinsky, claiming he made false and misleading statements about the safety of the cryptocurrency lending platform and hid its deteriorating financial condition from the public.

Last year, her office sued crypto firm Nexo, claiming it was operating illegally and had defrauded investors. That case came as regulators from New York and seven other states took action against the company for offering an unregistered product.

Also in 2022, the state reached a nearly $1 million settlement with crypto firm BlockFi over allegations that it had also offered unregistered securities, part of another multi-state action.

Meanwhile, PYMNTS reported on Wednesday (February 22) increased scrutiny of the crypto sector at the federal level, as the Securities and Exchange Commission begins to take new measures against stablecoins.