Crypto Company CoinEx Sued by New York for Failure to Register
New York State Attorney Letitia James is trying to prevent the platform from operating in New York
The New York State Attorney General has sued cryptocurrency platform CoinEx, alleging that it failed to register as a securities and commodities broker and misrepresented itself as a crypto exchange.
CoinEx, founded in 2017, described itself as “a professional global cryptocurrency exchange” on its website. Investors can trade digital assets such as bitcoin and Luna through the website and app. But New York prosecutors said CoinEx is not registered with the US Securities and Exchange Commission or designated by…
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The New York State Attorney General has sued cryptocurrency platform CoinEx, alleging that it failed to register as a securities and commodities broker and misrepresented itself as a crypto exchange.
CoinEx, founded in 2017, described itself as “a professional global cryptocurrency exchange” on its website. Investors can trade digital assets such as bitcoin and Luna through the website and app. But New York prosecutors said CoinEx is not registered with the US Securities and Exchange Commission or designated by the Commodity Futures Trading Commission as an exchange, as required by New York state law.
The office of New York Attorney General Letitia James said prosecutors were also able to buy and sell crypto on CoinEx in New York, despite the fact that the company is not registered with the state. New York law requires securities and commodities brokers to register with the state to do business there.
The prosecution seeks to stop CoinEx from falsely representing itself as an exchange and preventing it from operating in New York, and from using measures such as geolocation tools based on IP addresses to prevent access to the company’s app, website or services from New York.
Representatives for CoinEx did not immediately respond to a request for comment.
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The case, announced Wednesday, is the latest action by New York’s attorney general in policing the crypto sector and using state laws to protect investors.
In recent months, Ms. James’ office has sued the former CEO of now-bankrupt cryptocurrency lender Celsius Network LLC for defrauding investors. It also reached a nearly $1 million settlement with crypto platform BlockFi Lending LLC for offering unregistered securities. Last year, her office warned New Yorkers about the risks of investing in crypto.
The New York Attorney General’s office has also encouraged New Yorkers to report issues related to deceptive behavior in the crypto market and asked those employed in the sector to blow the whistle on any misconduct or fraud they may have witnessed in their work.
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Write to Mengqi Sun at [email protected]
