In order to resolve the lawsuit filed by New York State Attorney General Letitia James, CoinEx has agreed to a settlement of $1.8 million and a prohibition from operating in the state. The lawsuit alleged that the exchange had operated unlawfully by failing to register with the state.
On Wednesday, a proposed settlement was submitted to a Manhattan court in New York, pending the judge’s approval. The settlement stipulates that CoinEx will face a ban on engaging in the offering, selling, or buying of securities and commodities in New York, as well as making its platform accessible within the state.
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As part of the settlement, the payment consists of $1.17 million allocated for refunds to 4,691 investors, with a possibility of reduction if they withdraw their digital assets within a specified 90-day time frame. Additionally, a fine of $626,000 is included.
It is important to note that CoinEx, also known as Vino Global Ltd., did not admit any wrongdoing while agreeing to the settlement. The Hong Kong-based platform was established in 2017.
In a statement, Attorney General Letitia James emphasized the risks posed by unregistered digital asset platforms to investors, consumers, and the overall economy. She stated that the agreement reached today should serve as a clear warning to platforms that disregarding New York’s laws will result in significant consequences.