CoinEx Agrees To Settlement To Pay Over $1.7 Million In Fines To New York Investors

Key Points:

• CoinEX has been banned in New York for fraudulently advertising itself as a reputable cryptocurrency exchange.
• Authorities also confiscated $1.7 million in cryptocurrency assets.
• Despite accepting the compensation, CoinEx, also known as Vino Global LLC, refused to admit any wrongdoing.

CoinEx agreed to pay over $1.7 million and be barred from operating in New York in order to resolve a lawsuit filed by state Attorney General Letitia James, accusing the cryptocurrency exchange of operating unlawfully due to a failure to register with the state.

A proposed settlement was filed in a New York state court in Manhattan on Wednesday, and it must be approved by a judge. It demands that CoinEx refrains from providing, selling, or purchasing securities and commodities in New York and from making its platform accessible in the state.

The deal settles a prior complaint filed against the exchange in February, in which the state of New York accused the company of fraudulently portraying itself as an exchange and failing to register with local authorities.

“As part of today’s consent order, CoinEx is banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making its platform available in the state,” according to the release.

James alleged that the company’s refusal to register before purchasing and selling tokens such as AMP, LBRY, LUNA, and Rally violated the Martin Act, a strong state legislation used to combat financial fraud.

“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy. Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws,” James said in a statement.

According to the deal, nearly $1.1 million will be repaid to 4,691 New York investors, with the state receiving more than $600,000 in fines. CoinEx must also apply geo-blocking to prohibit access from New York IP addresses. The exchange is likewise prohibited from opening new accounts for US consumers.

In agreeing to settle, CoinEx did not acknowledge wrongdoing. Vino Global Limited is a Hong Kong-based platform that was created in 2017.

For the next 90 days, CoinEx consumers will be able to retrieve crypto money straight from the exchange. After this time, qualifying investors may request cash in fiat currency by contacting coinexrefund@ag.ny.gov. Investors would be repaid bitcoin or cash equivalents kept in accounts as of April 25, 2023, according to the release.

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Harold

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