Coinex Resolves Legal Dispute with New York Attorney General

Coinex Resolves Legal Dispute with New York Attorney General

In a press release issued on June 15 by the Office of the New York State Attorney General, Coinex, the cryptocurrency exchange, has successfully settled a legal battle with Letitia James, the attorney general of New York. The exchange has agreed to pay USD 1.7 million in penalties and refunds, marking an end to the contentious dispute. As a result of the settlement, Coinex is now withdrawing from the US market, signaling a strategic shift in its operations.

Coinex Exchange Reaches Settlement and Exits US Market

Letitia James, the vigilant attorney general, took decisive action against Coinex in late February 2023, alleging the exchange's involvement in offering unregistered securities and running an unregistered platform. The complaint highlighted the availability of unregistered securities through Coinex in the state of New York.

After more than three months of negotiations, Coinex has reached an agreement with the attorney general's office, putting an end to the legal proceedings. The settlement requires the exchange to pay USD 1.7 million in penalties and refunds to affected individuals. Additionally, Coinex is now prohibited from operating within the state of New York. Notably, the exchange has also announced its decision to exit the entire US market.

Letitia James emphasized that protecting investors in New York remains the top priority for her office. The attorney general hopes that this settlement serves as a powerful message to other crypto companies, highlighting the severe consequences of disregarding New York's laws. 

“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.”

Letitia James Cracks Down on Unregistered Crypto Platforms

The attorney general's office has been proactive in targeting non-compliant crypto firms. In a parallel case, a lawsuit was filed against Kucoin, another cryptocurrency exchange, with similar allegations. It is worth noting that Ethereum (ETH) was classified as an unregistered security in that particular lawsuit. Additionally, the AG office successfully obtained USD 4.3 million from Coin Cafe, a Brooklyn-based crypto firm, for engaging in deceptive practices that harmed investors.

Letitia James' robust enforcement efforts align with the increased regulatory actions taken by the US Securities and Exchange Commission (SEC) during this period. The coordinated crackdown on non-compliant crypto platforms aims to protect investors and maintain the integrity of the financial system.

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