New York Attorney General Accuses CoinEx of Being an Unregistered Exchange
- The New York Attorney General charged CoinEx for failing to register with the state.
- The Attorney General claimed that the exchange had been operating as an unregistered stockbroker.
- In a tweet, he added that the authority has decided to prevent the company from continuing to operate.
New York Attorney General Letitia James has charged professional global crypto exchange CoinEx, alleging that the firm had been operating illegally as an unregistered securities and commodity broker.
On Wednesday, the Attorney General filed the petition with the New York Supreme Court asserting that CoinEx had engaged in “repeated and persistent fraudulent practices.”
On appeal, James announced that the court is moving forward with a “permanent injection” ending CoinEx’s label as a crypto exchange, stating:
Petitioner is asking the Court for a permanent injunction to stop the ongoing illegal activities of Vino Global Limited doing business as COINEX (“CoinEx” or “Respondent”), including engaging in the offer, sale, and purchase of securities and basic products without registering in the State of New.
Furthermore, the petition also accused the crypto exchange of violating the state’s Martin Act, which is considered one of the strict anti-fraud and securities regulations in the United States.
According to the petition filed by James, CoinEx held various tokens and services that are considered securities or commodities under state law. Therefore, James reiterated that the exchange violated the Martin Act and the General Trade Law by stating:
CoinEx is engaged in the business of selling and offering to sell commodities through accounts, agreements or contracts to accounts in New York primarily for investment purposes. Tokens are also securities under the Martin Act because they represent investments of money in common ventures with profits derived primarily from the efforts of others.
Furthermore, the petition claimed that “CoinEx misrepresented itself as a global cryptocurrency “exchange” without proper registration or designation in violation of New York law.”
Notably, in a Twitter thread posted on February 23, James claimed that crypto platforms ignoring the laws “put New York at risk”:
He added that the law has decided to “prevent CoinEx from operating in New York” as part of its efforts to protect the public from the dangers of the crypto industry.
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