Crypto Exchange CoinEx Fined $1.8 Million for Operating Without Registration
CoinEx, a Hong Kong-based crypto exchange, has been fined $1.8 million for operating without registration in New York. The State Attorney General Letitia James had filed a lawsuit against CoinEx, alleging that it was running a crypto exchange in the state without registering. The case has now been settled, and CoinEx has agreed to pay $1.8 million to resolve it. In addition, the exchange has been barred from operating in New York without registration.
What is the Settlement About?
As per the settlement between CoinEx and the Attorney General, the exchange cannot engage in the purchase or sale of securities and commodities in New York. Its platform will also not be available in the state. Under the settlement, CoinEx is required to refund $1.17 million to 4,691 investors. The amount may decrease if investors withdraw their crypto assets within 90 days. The exchange is also required to pay a $626,000 penalty.
Why Did the Attorney General File a Lawsuit Against CoinEx?
According to James, unregistered crypto platforms pose a significant risk to investors, consumers, and the overall economy. The settlement serves as a lesson to crypto companies that operating without registration is not acceptable. CoinEx was launched in 2017 and is also known as Vino Global Ltd. The Attorney General had filed a lawsuit against the exchange in February, alleging that it violated the Martin Act by trading tokens such as AMP, LBRY, LUNA, and Rally without registration. The Martin Act is a strong law in New York that protects against financial fraud.
CoinEx Refuses to Admit Guilt
Although CoinEx has settled the case, it has refused to admit guilt. The exchange contends that it did not violate the law and that it settled the case to avoid costly litigation.
In Conclusion
The settlement between CoinEx and the Attorney General is a reminder to crypto companies that operating without registration can have expensive consequences. The case also highlights the need for regulation in the crypto industry to protect investors and prevent financial fraud.
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