The NYAG claimed that CoinEx was shut down for “falsely representing itself as a crypto exchange” and for failing to register as a broker-dealer.
Letitia James, the attorney general of New York, has prohibited the Hong Kong-based cryptocurrency exchange CoinEx from conducting business there. The action was taken after the exchange’s funds totaling more than $1.7 million were frozen for allegedly failing to register as a securities and commodities brokerage.
In a lawsuit brought against CoinEx in February, the exchange was charged with misrepresenting itself and failing to register with local authorities. The ban and money confiscation are part of the settlement to that case.
In New York, it is currently against the law for CoinEx to offer, sell, or buy securities and commodities, and the state cannot access its platform.
![New York Bans CoinEx Exchange, Seizes $1.7M in Crypto Assets image 123](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/06/image-123.png?resize=619%2C487&ssl=1)
![New York Bans CoinEx Exchange, Seizes $1.7M in Crypto Assets image 123](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/06/image-123.png?resize=619%2C487&ssl=1)
In accordance with the agreement, 4,691 New York investors would receive more than $1.1 million back in addition to more than $600,000 in fines.
Letitia James, the attorney general of New York, highlighted that the agreement serves as a message to cryptocurrency companies that breaking state laws will have serious repercussions. Her administration is still dedicated to taking legal action against cryptocurrency firms that defraud investors and endanger New Yorkers.
Within the following 90 days, CoinEx users will have the chance to get their cryptocurrency money back directly from the exchange. After that time, qualified investors may email coinexrefund@ag.ny.gov to request money in fiat currency. Cryptocurrencies and cash equivalents maintained in accounts as of April 25, 2023 will be included in the return procedure.
Related: CoinEx crypto exchange sued by New York for failing to register with state