New York Attorney General Sued CoinEx For Offering Unregistered Securities

Key Points:

• New York State Attorney General Letitia James sued CoinEx, claiming that it sold goods and securities not registered in New York.
• CoinEx should have complied with the subpoena issued in January of this year.
• Attorney General James seeks a court order preventing CoinEx from misrepresenting that it is an exchange, preventing the company from operating in New York.
• This action continues Attorney General James’ efforts to enforce New York laws in the crypto industry and protect New York investors.

New York State Attorney General Letitia James sued CoinEx, a cryptocurrency exchange, claiming that it sold goods and securities not registered in New York.

Wednesday’s lawsuit alleges CoinEx failed to register as an exchange with the U.S. Securities and Exchange Commission (SEC), as a commodity broker with the Commodity Futures Trading Commission, or with New York regulators before providing services in the state.

According to James, some of the cryptocurrencies offered by CoinEx are considered commodities and securities under New York’s securities law, the Martin Act, which includes four tokens: AMP, LBC, LUNA, and RLY.

Even so, the company says it is an exchange on its website and offers services similar to those provided by national stock exchanges or other matching platforms grants.

In addition, CoinEx failed to comply with the subpoena issued in January of this year. Through his lawsuit, Attorney General James seeks a court order preventing CoinEx from misrepresenting that it is an exchange, preventing the company from operating in New York, and directing CoinEx to perform IP address-based geoblocking and GPS location to control access to CoinEx Mobile Apps, websites and services from New York.

This action continues Attorney General James’ efforts to enforce New York laws in the crypto industry and protect New York investors.

“Our laws are designed to protect New Yorkers, and when companies ignore them, they put residents, investors, and businesses at risk,” said Attorney General James. “The days of crypto companies like CoinEx acting like the rules do not apply to them are over. My office will continue to protect New York investors and ensure our state’s laws are followed.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News