CoinEx Faces A Lawsuit From NY For Not Registering As A Crypto Exchange

NEW YORK, Feb 22 (Reuters) - The U.S. New York Attorney General Letitia James accused CoinEx, a Hong Kong-based bitcoin exchange, of operating unlawfully in New York without appropriate licensing. James submitted documents in a Manhattan court charging CoinEx of participating in repetitive and relentless deceptive practices, in violation of the Martin Act, a strong state statute designed to fight financial fraud.

Before purchasing and selling coins, CoinEx was charged with neglecting to register as a commodity broker-dealer, securities broker, or securities dealer. James also claimed that the business misrepresented itself as a worldwide cryptocurrency exchange without state authorization and refused to cooperate with a demand for evidence about its digital asset trading activities.

In reaction to the case, James stated that the days of cryptocurrency businesses behaving as if the regulations did not pertain to them are over. Her legal action wants compensation as well as a prohibition on New York residents using CoinEx's mobile app, website, and services.

CoinEx, also known as Vino Global Ltd, was established in 2017 and has yet to reply to queries for remarks on the issue. However, the business will have to defend itself in court against the allegations.

This action comes on the heels of a similar case in which New York and nine other U.S. states obtained up to $24 million from the cryptocurrency firm Nexo Inc and a subsidiary to settle legal claims that they traded without proper registration and were misled about their registration status.

At this point, it is unknown what effect the case against CoinEx will have on the bitcoin business as a whole. However, it is obvious that authorities are watching the sector closely and taking action against firms that they think are breaking the law.

Finally, CoinEx has been charged by New York Attorney General Letitia James for performing unlawful business in the state without appropriate registration. James accused the business of deceptive practices, breaking the Martin Act, and failing to cooperate with a demand for evidence regarding its digital asset dealing operations. The legal action wants compensation as well as a prohibition on access to CoinEx's services from New York. This complaint follows a similar case involving Nexo Inc, and it emphasizes the heightened scrutinizing that bitcoin businesses are subjected to from authorities.

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