The cryptocurrency exchange CoinEx has been sued by the New York attorney general’s office on the grounds that it misrepresented itself as an exchange and did not register as a broker-dealer for securities and commodities.
On its website, CoinEx, which was established in 2017, referred to itself as “a professional global cryptocurrency exchange.” Using its website and app, investors may trade digital assets like bitcoin and Luna. Nevertheless, according to New York state law, CoinEx isn’t registered with the U.S. Securities and Exchange Commission or designated as an exchange by the Commodities Futures Trading Commission, according to New York prosecutors.
Even though CoinEx isn’t officially registered in the state of New York, the office of Attorney General Letitia James reported that its prosecutors were nonetheless able to buy and sell cryptocurrency there. To conduct business in New York, brokers of commodities and securities must register with the state.
The prosecutors want to ban CoinEx from misrepresenting itself as an exchange and from operating in New York. They also want to utilize geolocation tools based on IP addresses to block access to the company’s app, website, or services from New York.
The litigation, which was revealed on Wednesday, is the most recent effort by the New York attorney general to regulate the cryptocurrency industry and use the state’s laws to safeguard investors.
The former CEO of the now-bankrupt cryptocurrency lender Celsius Network LLC was sued by Ms. James’ office recently for scamming investors. Also, it achieved a settlement with cryptocurrency platform BlockFi Lending LLC for the sale of unregistered securities worth about $1 million. Her administration cautioned New Yorkers about the dangers of investing in cryptocurrencies last year.
The former CEO of the now-bankrupt cryptocurrency lender Celsius Network LLC was sued by Ms. James’ office recently for scamming investors. Also, it achieved a settlement with cryptocurrency platform BlockFi Lending LLC for the sale of unregistered securities worth about $1 million. Her administration cautioned New Yorkers about the dangers of investing in cryptocurrencies last year.
The New York attorney general’s office has also urged residents of the state to report instances of corrupt behavior in the cryptocurrency market. It has also urged those who work in the industry to report any instances of dishonesty or fraud they may have seen in their work.
