New York Bans Crypto Exchange CoinEx

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The New York State Attorney General’s Office (NYAG) has imposed penalties on Hong Kong-based crypto exchange CoinEx of approximately $1.7 million in response to the company’s operation without a license.

The agency also revealed that CoinEx had refused to register as a broker-dealer in securities and commodities, plus falsely portrayed itself as a cryptocurrency trading platform.

As a result, NYAG demanded that CoinEx reimburse 4,691 local investors more than $1.1 million and pay a fine in excess of $600,000. Reports of legal proceedings between the exchange and NYAG surfaced in February, with the platform prompting its users to withdraw funds by April 24.

Making it clear that the office will continue to take legal action against any such digital asset platforms, NYAG stated, “Today’s agreement should serve as a warning to crypto companies that ignoring laws has serious consequences.”