The state of New York’s Attorney General, Letitia James, has initiated legal action against the cryptocurrency exchange CoinEx, alleging that CoinEx has been doing business in an unlawful manner inside the state.
According to the complaint, CoinEx did not register with the New York State Department of Financial Services (NYDFS), which is necessary for any business that provides cryptocurrency-related services in the state of New York. James has pursued a number of legal proceedings against cryptocurrency firms operating inside the state, the most recent of which is the lawsuit.
CoinEx Allegations: Recurrent Fraud
In court filings that James presented to a state court in the borough of Manhattan in the state of New York, he accused CoinEx of having “engaged in recurrent and persistent fraudulent activities.”
She asserted that CoinEx had violated the Martin Act, a significant piece of state legislation that was designed to combat financial fraud because the company had not registered with the state as a commodities broker-dealer, securities broker, or securities dealer prior to purchasing and selling tokens.
James also said that CoinEx had portrayed itself as a global cryptocurrency “exchange” before receiving clearance from the state, despite the fact that this was not the case. In addition, according to her statement, the corporation did not comply with her demand for testimony about its digital asset trading activity from the previous month.
Letitia James Sues CoinEx
Letitia James, the attorney general of New York, made these remarks on Wednesday when she announced legal action that will be taken against the cryptocurrency exchange CoinEx. “The days of crypto firms behaving like the rules do not apply to them are done,” she said.
James underlined how important it is for businesses that operate in the cryptocurrency sector to comply with state requirements, such as registering with the New York Department of Financial Services, in order to safeguard investors and maintain the integrity of the market.
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