On Wednesday, the New York State Attorney General’s office filed a lawsuit against the cryptocurrency exchange CoinEx, alleging that it is an illegal commodity and securities broker-dealer under state law.
CoinEx was Sued by the New York Attorney General for Selling Unregistered Securities
Letitia James, the attorney general of New York State, filed a lawsuit against the exchange, a cryptocurrency exchange, alleging that it marketed goods and securities that were not registered for sale in New York. James wants the exchange to restrict all internet addresses coming from New York and is seeking a court order to have it removed from the state.
James said the exchange engaged in repeated and persistent fraudulent acts and broke the Martin Act, which is one of the nation’s most anti-fraud and securities regulation statutes, in a 38-page petition submitted to the New York Supreme Court on February 22. Yet, the company describes itself as an exchange on its website and provides services that are comparable to those offered by national stock exchanges or other matching systems grants.
In a statement on February 22, James claimed that as is required by New York law, the exchange is not registered with the Securities and Exchange Commission or the Commodities Futures Trading Commission to sell the tokens.
The Attorney General’s Office allegedly claimed it was able to trade on the platform after setting up a CoinEx account with a computer and IP address located in New York.
“The days of crypto companies like CoinEx acting like the rules do not apply to them are over.”Letitia James
Additionally, the petition claims that the exchange disregarded an Attorney General’s Office subpoena issued on December 22 asking it to give testimony regarding the virtual asset trading activities of its platform.