As a result of the state court ruling in which they found that they falsely presented themselves as a crypto exchange, CoinEx is facing some very difficult moments. This company's leaders had to deal with the consequences of their actions when this happened.
By failing to register as a securities and commodity broker, CoinEx has created a lot of problems for itself. They have been banned from working on crypto exchanges in Hong Kong and New York by Attorney General Letitia James.
"Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy," Attorney General James said in a statement. "Today's agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York's laws." In an interesting turn of events, more than 1.7 million dollars worth of funds were confiscated as part of this investigation.
That alone speaks volumes about the kind of a mess CoinEx is in when it comes to its finances.
The agreement resolves a previous lawsuit against CoinEx from February, when New York's attorney general accused it of misrepresenting itself as an exchange and failing to register with local authorities.
There is no doubt that CoinEx has been accused of falsely presenting themselves as an exchange in February, but they have not been registered as such. There will be no more ability for Coin Ex to offer, sell or purchase securities and commodities in New York.
A fine of 600K dollars will also be imposed on Coin Ex by the state for the illegal activities. Investors from New York will receive a return of more than 1 million dollars as a result of this deal. During the next three months, CoinEx users will have the option to return crypto assets directly from the exchange to their wallets.
It will be possible for investors to receive the funds in fiat currency by sending an email to the name of the Coin Ex company.
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