Cryptocurrency trade CoinEx has been sued by New York Lawyer Basic Letitia James, who alleges the agency falsely represented itself as an trade by failing to register as a securities and commodities broker-dealer within the state.
A 38-page petition filed by James within the New York Supreme Court docket on Feb. 22 alleged CoinEx “engaged in repeated and protracted fraudulent practices” and violated the state’s Martin Act — thought-about some of the strict anti-fraud and securities regulation legal guidelines in america.
She additionally asserted CoinEx listed numerous tokens that certified as “each commodities and securities,” naming Amp (AMP), LBRY Credit (LBC), Rally (RLY) and Terra (LUNA).
When crypto platforms disregard our legal guidelines, they put New Yorkers in danger.
We’re looking for to cease @coinexcom from working in New York and can proceed to guard individuals from the hazards of the cryptocurrency business.
— NY AG James (@NewYorkStateAG) February 22, 2023
In a Feb. 22 assertion, James mentioned that CoinEx is just not registered with the Securities and Change Fee or the Commodity Futures Buying and selling Fee, “as is required beneath New York legislation” to promote the tokens.
The Lawyer Basic’s Workplace created a CoinEx account with a New York-based pc and web handle and alleged it was capable of commerce on the platform.
“The times of crypto firms like CoinEx appearing like the foundations don’t apply to them are over,” she added.
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The petition additionally states that CoinEx did not adjust to a Dec. 22 subpoena despatched by the Lawyer Basic’s Workplace as a way to “present testimony regarding the digital asset buying and selling actions of its platform.”
“CoinEx was compelled by subpoena to seem for an examination beneath oath on January 9, 2023, and failed to seem […] CoinEx’s non-appearance is prima facie proof that CoinEx has engaged within the [mentioned] fraudulent practices.”
Within the petition, James is looking for a court docket order to cease CoinEx from advertising and marketing itself as an trade and forestall it from working within the state by ordering it to geoblock web addresses and GPS location knowledge originating from New York.
Cointelegraph contacted CoinEx for remark however didn’t obtain an instantaneous response.
