Attorney General Letitia James has reportedly made a major impact against illicit cryptocurrency operations in the United States by disclosing the recovery of over $1.7 million from the cryptocurrency network CoinEx.
The New York Attorney General has ordered the offshore cryptocurrency exchange CoinEx to immediately suspend operations in the United States, pay penalties, and reimburse investors in the state of New York who were harmed by the company’s illegal behavior. According to the findings of the investigation into CoinEx, the company has been facilitating Bitcoin transactions in New York without the proper authorizations and licenses.
The company had been operating without the necessary License from the New York State Department of Financial Services or registration as a money transmitter.
Attorney General James stressed the risks associated with unregistered crypto platforms, highlighting the importance of compliance with New York’s laws. She reiterated her commitment to crack down on crypto companies that disregard the law, deceive investors, and put New Yorkers at risk.
CoinEx, a Hong Kong-based virtual currency trading platform, allowed investors to buy and sell cryptocurrency without registering as a securities and commodities broker-dealer, a requirement under New York law. An investigation conducted by the Office of the Attorney General (OAG) confirmed that individuals with New York-based IP addresses could easily access and utilize CoinEx’s services.
Under New York law, the attorney general’s authority to ban CoinEx from operating in the state is clear, but the state is unable to ban it from operating in other states. A spokesperson for the attorney general’s office specified that the law banned CoinEx from doing business in New York, but asserted that the settlement “codifies” CoinEx’s decision not to operate in the U.S
Although, two days after James’ lawsuit was filed, a user shared a screenshot showing a note from CoinEx explaining that it would be terminating service for its US users. CoinEx did not return Decrypt’s request for a comment. James touted the settlement as the latest in a string of lawsuits her office filed against crypto firms in recent years. Altogether her office has collected $500 million in fines from these actions, she said in the press releas