CoinEx Banned From Operating in NY, Must Refund $1.7M

• CoinEx, a Hong Kong-based cryptocurrency exchange, has been sued for operating illegally in February 2023.
• The firm has reached an agreement with the office of the New York Attorney General that includes a payment of over $1.7 million and a ban from offering its services in New York.
• CoinEx will pay fines and make refunds worth more than $1.7M to over 4,600 New York investors, and is not allowed to operate in New York nor accept new customers from the US.

CoinEx Sued For Operating Illegally

In February 2023, CoinEx, a Hong Kong-based cryptocurrency exchange was sued by the office of the New York Attorney General (NYAG) for operating illegally.

Agreement Reached Between NYAG and CoinEx

The firm has now reached an agreement with the office of the NYAG which includes a payment of over $1.7 million and a ban from offering its services in New York. The recovered funds will be used for penalties and refunds to New York investors over the next 90 days when users can be paid back in crypto directly from the exchange. Furthermore, CoinEx is prohibited from opening new accounts for customers in the U.S., as well as offering, selling or buying securities or commodities in New York. Lastly, geoblocking will also be implemented to restrict access to the CoinEx platform for New York IP addresses.

Comment From NYAG Letitia James

Commenting on this development, NYAG Letitia James said: “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 take strong action against those who seek to evade our laws”.

CoinEx Refunds To Over 4,600 Investors

The settlement between CoinEx and NYAG’s office requires them to refund over $1 million dollars to over 4,600 investors across all U.S states including California and Florida etc., alongside paying penalties worth $600 thousand dollars to state of NewYork authorities .

Conclusion

In conclusion ,CoinEx has agreed upon paying fines worth more than 1 point 7 million dollars & making refunds up-to 1 point 1 million dollars , however it won’t be able anymore offer its services legally within The state Of new york & further would not be allowed open any account outside usa .