New York authorities ban CoinEx operations in the state

The New York Office of the Attorney General (NYAG) has barred CoinEx from operating without a license, imposing penalties of around $1.7 million.

According to the statement, the company refused ‘to register as a securities and commodities broker-dealer’ and ‘misrepresented’ itself as a cryptocurrency trading platform.

The agency sought restitution to 4,691 local investors totaling more than $1.1 million and penalties of more than $600,000.

The news of the exchange’s and NYAG’s lawsuits emerged in February. The platform urged users to withdraw funds by April 24.

Today’s agreement should serve as a warning to crypto companies: ignoring the law carries serious consequences. The office will continue to pursue digital-asset platforms that flaunt the law, mislead investors and put New Yorkers at risk,” the state authorities said.

Under the court order, CoinEx must implement IP-address-based geoblocking. The company is also barred from creating new accounts for customers in the United States.

Existing users will be able to withdraw assets for 90 days after the restrictions come into effect. After this period they must submit a request by email to have the funds returned in fiat.

On June 15, Tether said that the NYAG had provided CoinDesk with access to court documents relating to the 2021 case.