Hong Kong-based crypto exchange CoinEx has agreed to pay over $600,000 in penalties and refund $1.17 million to New York investors, according to a June 15 statement.
CoinEx would make the refund to its 4,691 New York investors in cryptocurrencies over the next 90 days.
Additionally, the exchange has been banned from offering, selling, or purchasing securities and commodities in New York and is prohibited from making 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.”
New York Attorney General Letitia James said the agreement would warn “crypto companies that there are hefty consequences for ignoring New York’s laws.” She added:
“Unregistered crypto platforms pose a risk to investors, consumers, and the broader economy.”
Under Attorney General James, New York has maintained strict regulations over the crypto industry, filing lawsuits against several crypto firms, including CoinEx and KuCoin. The press statement stated that her office had recovered over $500 million from the cryptocurrency industry.
Meanwhile, the court filing stated that CoinEx does not admit or deny that any crypto asset is a security or commodity.
Before this agreement, CoinEx had withdrawn entirely from the U.S. market in February. The exchange attributed its decision to the unfavorable regulatory environment at the time.
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