CoinEx to Leave the US After NYAG Settlement

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  • Crypto platform CoinEx will leave the US after settling with the New York Attorney General
  • The Hong Kong-based platform was serving New York-based customers in contravention of financial laws
  • CoinEx will also pay $1.8 million in fines

Hong Kong-based cryptocurrency platform CoinEx has agreed to terminate all US operations after it settled a lawsuit with New York Attorney General Letitia James. The settlement, announced on Thursday, includes CoinEx cutting ties with the US and surrendering approximately $1.8 million, which will be partially used for customer refunds. The agreement resolves a lawsuit filed by James in February, which accused CoinEx of failing to properly register as a broker-dealer in New York. CoinEx has admitted to the allegations stated in the settlement document.

CoinEx Served New York Customers

CoinEx was accused of selling several cryptocurrencies which the NYAG considered securities and allowed New York residents to sign up for its service, including the Office of the Attorney General (OAG) itself in a test case. CoinEx was also accused of not registering with the Securities and Exchange Commission (SEC) as a national securities exchange or obtaining the appropriate designation from the Commodity Futures Trading Commission (CFTC), as mandated by New York law.

Furthermore, CoinEx did not comply with a subpoena issued by the OAG over the issues raised, which only exacerbated its problems.

James’ Rampage Continues

As part of the settlement, CoinEx will discontinue its services in the state of New York, implementing geoblocking measures to prevent access to its platform by users based in the state. CoinEx has also committed to preventing the onboarding of new clients from the United States, while existing US clients will no longer be able to make new deposits. The company will eventually fully withdraw its platform and services from the US market and will provide refunds for the cryptocurrency held by customers located in New York.

James has been on a mission to curb unregistered crypto platforms in recent years, chalking up more lawsuits than Gary Gensler on a good day.