CoinEx Settles With NYAG for $1.7M in Refund and Penalties

• CoinEx will reimburse over 4,600 New York investors a total of $1.1 million.
• Within the following 90 days, the exchange will reimburse customers in cryptocurrency.

After being sued in February 2023 for unlawful operations. Hong Kong-based cryptocurrency exchange CoinEx settled with the New York Attorney General’s office for over $1.7 million. And a prohibition on providing services in New York. The money that has been seized will be used to pay fines and reimburse investors in New York.

The New York Attorney General’s (NYAG) office said in a news statement that CoinEx will reimburse over 4,600 New York investors a total of $1.1 million and pay fines to the state of New York totaling $600,000. Within the following ninety days, the exchange will reimburse customers in cryptocurrency.

Rigorous Regulatory Measures

The deal between CoinEx and the NYAG’s office also prevents the cryptocurrency exchange from accepting new U.S. clients. Even providing, selling, or purchasing securities or commodities inside the state of New York. The company must also use geoblocking to prevent users from New York from accessing the CoinEx platform.

In a recent ruling, the New York Attorney General’s office demanded that Coin Cafe return more than $4 million to customers on the grounds that the cryptocurrency company had misled them via its allegedly “free” Bitcoin wallet storage service.

This development resolves a lawsuit filed by the NYAG’s office against CoinEx in February 2023. According to prior reports, New York state authorities have claimed that CoinEx misrepresented itself as a cryptocurrency exchange while really selling tokens classified as securities and commodities. CoinEx’s decision to stop serving the US market came soon after the lawsuit was filed.

More rigorous regulatory measures for the cryptocurrency sector were suggested in May by Attorney General James in the form of legislation dubbed the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act. According to James, the crypto business is vulnerable to fraud and other illegal activities because of the absence of strong crypto standards.

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