Bitrabo Editorial
New York Attorney General Letitia James has issued a ban on CoinEx, a Hong Kong-based cryptocurrency exchange, that prohibits its operations within the state. This decision comes after the exchange’s funds, totaling over $1.7 million, were seized due to allegations of failure to register as a securities and commodities brokerage in accordance with US regulations. The proposed settlement is currently awaiting approval from a judge in a New York state court in Manhattan.
If approved, the settlement will outline the terms and conditions for CoinEx. It includes a prohibition on offering, selling, or purchasing securities and commodities in New York, as well as denying access to individuals residing in the state. The settlement aims to address the regulatory issues and provide a framework for resolving the legal conflict.
CoinEx Settled Without Admission Of Wrongdoing
Once the settlement is approved, CoinEx will be required to make a payment consisting of several components. Firstly, $1.17 million will be allocated for refunds to be distributed among 4,691 investors. However, if any investors choose to withdraw their cryptocurrency within a specified 90-day period, the refund amount may be reduced. Additionally, CoinEx will be subject to a fine of $626,000, serving as a deterrent for future non-compliance. These payments reflect the restitution to affected investors and the imposition of a monetary penalty on CoinEx but do not imply any admission of wrongdoing by the exchange.
Despite agreeing to the settlement, CoinEx, also known as Vino Global Ltd., denies any wrongdoing related to the alleged violations. Attorney General James warns crypto companies that there are significant consequences for disregarding New York’s laws and vows to crack down on those that mislead investors and put New Yorkers at risk.
The lawsuit filed by Attorney General James in February accused CoinEx of violating the Martin Act, a state law used to combat financial fraud. The lawsuit alleges that the exchange bought and sold tokens without proper registration.
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