The Crypto Roundup: 16 June 2023 | CryptoCompare.com

The Crypto Roundup: 16 June 2023 | CryptoCompare.com

Time Stamp: June 16, 2023 5:22 AM
Source Node: 2725712

New York Attorney General Letitia James has announced a settlement with CoinEx, a Hong Kong-based virtual currency trading platform. CoinEx, which was sued by the state earlier this year, has agreed to refund nearly 5,000 New York investors a total of $1.2 million and pay over $600,000 in penalties. The company is also banned from offering securities and commodities in New York and from making its platform available in the state.

James stated that unregistered crypto platforms pose a risk to investors, consumers, and the economy, warning that crypto companies will face severe consequences for ignoring New York's laws and vowed to continue cracking down on companies that disregard the law, mislead investors, and put New Yorkers at risk.

This settlement is part of a broader crackdown on the crypto industry by James's office. Last month, she introduced proposed legislation that could force companies to refund customers who are victims of fraud. She has also sued KuCoin and former Celsius CEO Alex Mashinsky.

New York state has one of the strictest regulatory regimes for crypto companies in the U.S., with its BitLicense overseen by the state's Department of Financial Services. James reiterated the call for New Yorkers affected by deceptive conduct in virtual assets to report issues to state authorities and encouraged industry workers who have witnessed misconduct or fraud to file an online whistleblower complaint with her office.

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