Cryptocurrency exchange Over the next 90 days, CoinEx will refund over $1 million in cryptocurrencies to New York investors.
CoinEx refund over $1M
According to a June 15 statement, Hong Kong-based cryptocurrency exchange has agreed to pay over $600,000 in penalties and refund $1.17 million to New York investors. Coin would refund its 4,691 New York cryptocurrency investors over the next 90 days.
Furthermore, the exchange is barred from offering, selling, or purchasing securities and commodities in New York, and it is not permitted to make its platform available in the state.
“CoinEx must implement geoblocking to prevent New York IP addresses from accessing their platform. CoinEx is also prohibited from creating any new accounts for U.S. customers and existing U.S. customers can only withdraw their crypto from the platform.”
The agreement, according to New York Attorney General Letitia James, will warn “crypto companies that there are hefty consequences for ignoring New York’s laws.” She went on to say:
“Unregistered cryptocurrency platforms pose a risk to investors, consumers, and the broader economy.”
New York has maintained strict regulations over the crypto industry under Attorney General James, filing lawsuits against several crypto firms, including CnEx & KuCoin. According to the press release, her office has recovered more than $500 million from the cryptocurrency industry.
Meanwhile, according to the court filing, CoinEx does not admit or deny that any crypto asset is a security or commodity.
Prior to this agreement, CoinEx had exited the US market entirely in February. The exchange attributed its decision to the time’s unfavorable regulatory environment.
To read our blog on “Multicoin expects FTX contagion to wipe out many trading firms,” click here
