NEW YORK, Feb 22 (Reuters) – CoinEx was sued on Wednesday by New York Legal professional Normal Letitia James, who accused the cryptocurrency alternate of transacting enterprise illegally as a result of it didn’t register with the state.
In papers filed with a New York state courtroom in Manhattan, James accused CoinEx of getting “engaged in repeated and protracted fraudulent practices.”
She mentioned CoinEx’s failure to register as a commodity broker-dealer, securities dealer or securities vendor earlier than shopping for and promoting tokens violated the Martin Act, a strong state regulation used to combat monetary fraud.
James additionally mentioned CoinEx held itself out with out state permission as a worldwide cryptocurrency “alternate,” and failed final month to conform along with her subpoena for testimony about its digital asset buying and selling actions.
“The times of crypto firms like CoinEx appearing like the foundations don’t apply to them are over,” James mentioned in an announcement.
CoinEx didn’t instantly reply to requests for remark.
The Hong Kong-based firm was based in 2017 and is often known as Vino International Ltd, in line with courtroom papers.
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James’ civil lawsuit seeks restitution, and a ban on entry to CoinEx’s cellular app, web site and providers from New York.
In January, New York and 9 different U.S. states secured up to $24 million from the cryptocurrency firm Nexo Inc and an affiliate to resolve civil claims they transacted with out correct registration and lied about their registration standing.
Reporting by Jonathan Stempel in New York; Modifying by Chris Reese and David Gregorio
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