A Hong Kong crypto company was forced to pay more than $1.7 million in investor refunds and penalties after reaching an agreement with the New York State Attorney General (AG) Letitia James.
James launched a lawsuit against the trading platform CoinEx in February, accusing the company of failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.
The attorney general announced in a press release this week that CoinEx will pay more than $1.1 million in refunds to 4,691 New York investors and more than $600,000 in penalties to the state as part of an agreement to end the lawsuit.
The trading platform was also banned from operating in New York, though it had already announced months ago that it was ceasing US operations in response to the lawsuit. The agreement requires CoinEx to utilize geoblocking to prevent New York IP addresses from accessing its platform.
James, who has served as New York’s AG since 2018, has put crypto in her crosshairs in recent years, claiming to have recovered more than $500 million from the digital asset industry for violating state laws.
Says the attorney general,
“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy. 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.”
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