{"id":78990,"date":"2023-05-19T12:57:10","date_gmt":"2023-05-19T09:57:10","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78990"},"modified":"2025-09-11T08:28:37","modified_gmt":"2025-09-11T05:28:37","slug":"coin-cafe-to-pay-4-3m-to-settle-with-ny-ag-over-investor-deception","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/coin-cafe-to-pay-4-3m-to-settle-with-ny-ag-over-investor-deception\/","title":{"rendered":"Coin Cafe to pay $4.3m to settle with NY AG over investor deception"},"content":{"rendered":"<p>The cryptocurrency platform Coin Cafe, accused of deceiving investors through fees, will pay $4.3 million under an agreement with the New York State Attorney General&#8217;s Office.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">This is another example of why my office proposed commonsense measures to regulate the cryptocurrency industry and protect people from fraud.<a href=\\\"https:\/\/t.co\/G5XkasCfhA\\\">https:\/\/t.co\/G5XkasCfhA<\/a><\/p>\n<p>\u2014 NY AG James (@NewYorkStateAG) <a href=\\\"https:\/\/twitter.com\/NewYorkStateAG\/status\/1659236035845292039?ref_src=twsrc%5Etfw\\\">May 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>According to the department, the Brooklyn-based company charged \u201cunreasonable fees\u201d for holding bitcoins without properly informing customers. In some cases this led to investors\u2019 accounts being depleted.<\/p>\n<p>One investor paid a fee exceeding $10,000 in a month, another $51,000 over 13 months. Meanwhile, the platform\u2019s site advertised the service as free.<\/p>\n<p>Coin Cafe initially applied for a license to provide crypto-related services with the <span data-descr=\\\"New York Department of Financial Services\\\" class=\\\"old_tooltip\\\">NYDFS<\/span> in July 2015, but it was approved only in January 2023. Regardless, the company was allowed to operate with the caveat that, in the absence of a license, it exposed investors to risk.<\/p>\n<p>Starting in September 2020, Coin Cafe changed fee amounts four times, never clearly notifying investors of increases, the Attorney General\u2019s Office noted. In addition, from October 2022 the company began charging inactivity fees.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cIf an investor did not buy, sell, or transfer bitcoins on Coin Cafe\u2019s site for 30 days, they were charged monthly more than 7.99% of the total account balance or $99 in bitcoins,\u201d the department said.<\/p>\n<\/blockquote>\n<p>Under the settlement, the platform has agreed to fully reimburse the fee amounts within 2024. It must also notify customers by email of their right to compensation by May 23.<\/p>\n<p>Earlier in May, the NYDFS <a href=\"https:\/\/forklog.com\/en\/news\/bitflyer-usa-fined-1-2-million\">fined the bitcoin exchange BitFlyer USA<\/a> $1.2 million for failing to meet state cybersecurity requirements.<\/p>\n<p>Earlier, the New York Attorney General <a href=\"https:\/\/forklog.com\/en\/news\/new-york-attorney-general-seeks-broader-powers-to-regulate-the-crypto-industry\">called to expand its powers<\/a> to regulate the crypto industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency platform Coin Cafe, accused of deceiving investors through fees, will pay $4.3 million under an agreement with the New York State Attorney General&#8217;s Office.<\/p>\n","protected":false},"author":1,"featured_media":78991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1178,1304,1457,26],"class_list":["post-78990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockchain-fees","tag-fines","tag-nydfs","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=78990"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78990\/revisions"}],"predecessor-version":[{"id":78992,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78990\/revisions\/78992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/78991"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=78990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=78990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=78990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}