New York Legislators Accuse CoinEX Of Unregistered Crypto Transaction
The New York Attorney General Letitia James pressed charges against the Hong Kong-based crypto exchange Coinex technology limited (CoinEX) for contravening US law. Letitia submitted a petition at the New York supreme court on February 22, claiming that CoinEX failed to abide by the state registration requirements.
According to Letitia’s petition, CoinEX is accused of engaging in crypto activities without obtaining registration approval from the US SEC.
CoinEX Violates SEC Laws
Legislators in New York have joined forces to regulate the crypto space fleeing non-compliance with virtual operators. The legislator’s efforts led to legal action against the former chief executive of Celsius Network, Alex Mashinsky. Before this, the legislators had sanctioned other crypto exchanges, including Bitfinex and Tether, for violating the SEC laws.
Legislators Sanction CoinEX
On February 22, the legislators issued a petition at the New York Supreme court accusing CoinEX of failing to register with the US SEC. The petition revealed that CoinEX crypto assets fall under the commodities and securities categories and are required to be registered by the SEC. In support of this, the legislator reviewed the Martin Act, which considers commodities and securities as an investment that can generate profit.
The petition revealed that the crypto exchange failed to appear in court in January for summoning.
Elsewhere, the legislators at the New York attorney general office disclosed the four tokens illegally issued by CoinEX. The crypto assets under scrutiny included AMP, LBC, and Luna.
The February 22 petition urges CoinEX to engage in regulated crypto exchanges and comply with the state’s laws. The New Attorney general demanded CoinEX to provide all financial reports for transactions conducted in New York.
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