New York bans CoinEx exchange, seizes $1.7M in crypto assets

CoinEx was shut down for failing to register as a broker-dealer and for “falsely representing itself as a crypto exchange,” the NYAG said.

Hong Kong-based crypto exchange CoinEx has been banned from operating in New York by Attorney General Letitia James. According to an announcement on June 15, over $1.7 million worth of the exchange’s funds were seized for allegedly failing to register as a securities and commodities brokerage.

The agreement resolves a previous lawsuit against CoinEx from February, when the New York state accused it of falsely representing itself as an exchange and failing to register with local authorities.

“As part of today’s consent order, CoinEx is banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state,” reads the announcement.

As per the agreement, over $1.1 million will be returned to 4,691 New York investors, and more than $600,000 will be paid in penalties to the state.

“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,” James noted in the announcement. 

This is a developing story, and further information will be added as it becomes available.