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- 1 Earlier in February, New York authorities sued CoinEx and its higher officials.
- 2 The seized amount will be returned to concerned investors, while the remaining amount will be held as a penalty.
Attorney General Letitia James barred CoinEx, a cryptocurrency exchange based in Hong Kong, from operating its business in New York. According to the announcement of June 15, the authorities seized over $1.7 million worth of exchange funds.
As per the data, CoinEx failed to register as a securities and commodities brokerage. This is not the first time that the exchange is under trouble. Earlier in February, authorities accused CoinEx of claiming to be an exchange, but failing to register with the regional authorities.
The recent announcement highlights that CoinEx will be banned from offering, buying, and selling securities and commodities in New York.The platform is also prohibited from operating in this specified region.
From the seized amount, $1.1 million will be returned to investors who invested using the platform. The authorities will hold the remaining amount as penalties for violating the laws of New York.
CoinEx is instructed to implement geo-blocking to bar access by New York IP addresses. The exchange is also instructed to restrict the creation of new trading accounts of United States users.
The customers of the exchange will be able to recover their funds in the next 90 days. In an official letter, James noted that “the recent action against CoinEx is a warning and a lesson for crypto-focused companies that abiding by New York laws will put the company in trouble.”
She added, “My office will be minutely observing the process and will identify the one disrespecting the laws, misleading the investors, and pushing New Yorkers at risk.”
Cryptocurrency Exchange Becoming Major Target of Regulators
Dozens of crypto exchanges are facing legal action from global regulators, including Coinbase, OKX, Kucoin, Bybit, and Bitget. The US regulators are the ones taking the majority of legal actions. As per market analysts, the SEC stands first in opposing cryptocurrency adoption and usage.
Recently, the SEC has filed a lawsuit against one of the leading crypto exchanges for selling unregistered securities. Soon after the legal action, regulators labeled more than 50 crypto tokens and coins as ‘Security.’
The entire crypto market has faced and is still facing the consequences of the SEC’s actions. The crypto sector’s market capitalization dropped more than 5% in a week. Some primary tokens, including Bitcoin, Cardano, and Solana, declined over 3-23% following Coinbase and SEC’s legal battles.
According to CoinMarketCap, Bitcoin, the leader of all cryptocurrencies, surged 2.03% intraday, and at press time, it was trading at $25,467 with a 24-hour trading volume of $13 billion.
Earlier, BTC was ranked first in trading volume, but most recently, Tether bypassed BTC and acquired the first position in trading volume.
While writing this article, crypto market capitalization gained 1.40%, but Apecoin fell by 29.35% in a week, XRP declined by 12.58%, and EOS slipped 30.99% simultaneously.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
