CoinEx crypto exchange accused of fraud in U. S.
2023.02.23 02:01
CoinEx crypto exchange accused of fraud in U. S.
By Tiffany Smith
Budrigannews.com – Letitia James, the attorney general of New York, has filed a lawsuit against cryptocurrency exchange CoinEx. James claims that the company misrepresented itself as an exchange because it did not register as a securities and commodities broker-dealer in the state.
James filed a 38-page petition with the New York Supreme Court on February 22 alleging that CoinEx had violated the state’s Martin Act, one of the most stringent anti-fraud and securities regulation laws in the United States. James claimed that CoinEx had “engaged in repeated and persistent fraudulent practices.”
Amp (AMP), LBRY Credits (LBC), Rally (RLY), and Terra (LUNA) were among the tokens that, according to her, qualified as “both commodities and securities” on CoinEx.
Cryptocurrency platforms put New Yorkers at risk by breaking our laws.
We are attempting to prevent @coinexcom from operating in New York and will continue to safeguard individuals from the risks associated with the cryptocurrency industry.
James stated in a statement on February 22 that in order to sell the tokens, CoinEx is not registered with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The Attorney General’s Office claimed it was able to trade on the platform after creating a CoinEx account with a computer and internet address in New York.
She added, “The days of cryptocurrency companies like CoinEx acting like the rules don’t apply to them are over.”
Additionally, it is stated in the petition that CoinEx did not comply with a subpoena issued by the Attorney General’s Office on December 22, 2022, requiring it to “provide testimony concerning the virtual asset trading activities of its platform.”
“CoinEx was required to appear for an examination under oath on January 9, 2023, and failed to appear,” according to the subpoena. “CoinEx’s non-appearance is prima facie proof that CoinEx has engaged in the [previous] fraudulent practices.”
In the petition, James asks the court to order CoinEx to stop marketing itself as an exchange, stop operating in the state, and geo-block internet addresses and GPS location data from New York.
