CoinEx Banned From New York, Settles for $1.7M in Refunds

• CoinEx, a Hong Kong-based cryptocurrency exchange, has reached an agreement with the office of the New York Attorney General.
• The agreement includes a payment of over $1.7 million and a ban from offering its services in New York.
• The recovered funds will go into penalties and refunds to New York investors.

CoinEx Settles With NYAG

CoinEx, a Hong Kong-based cryptocurrency exchange, has reached an agreement with the office of the New York Attorney General for operating illegally in February 2023. The settlement requires CoinEx to pay back more than $1.7 million in penalties and refunds to New York investors over the next 90 days when users can be paid back in crypto directly from the exchange. The agreement also prohibits CoinEx from offering, selling, or buying securities and commodities in New York as well as opening new accounts for customers in the U.S., and apply geoblocking to restrict access to its platform for New Yorkers IP addresses.

Payment & Refunds

The payment of over $1.7 million by CoinEx covers both penalties and refunds to be made available to New York investors over the next 90 days when users can be paid back in crypto directly from the exchange.

Ban on Operating In NY

The agreement between CoinEx and NYAG’s office also prohibits them from offering their services in New York as well as opening new accounts for customers in the US and applying geoblocking to restrict access to their platform for New Yorkers IP addresses .

NYAG Letitia James Comments

Commenting on this development, NYAG Letitia James said “Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws.” She further added “My office will continue our efforts to protect consumers — including those participating in cryptocurrencies — across our state.”

Conclusion

CoinEx’s settlement with NYAG’s office is proof that governments are becoming increasingly aware of tech companies such as cryptocurrency exchanges operating illegally within their jurisdictions without proper licenses or permission from regulatory authorities like SEC or CFTC which could lead these firms into legal troubles if found guilty by financial watchdogs such as SEC or CFTC or any other agency responsible for upholding market standards