Cryptocurrency exchange with a $36.5 million trading volume – CoinEx – has received a legal petition from New York Attorney General Letitia James.
Letitia James, the current Attorney general of New York, filed a legal action against CoinEx on Wednesday because the exchange has failed to register with NY state and is an illegally running platform so far.
Latitia showed concern to ‘New Yorker’ that when such a crypto platform flouts our rules and policies, it puts people at huge risk.
Eventually, the Attorney General had to sue CoinEx when the exchange failed to register with the state as a security and commodity broker-dealer, before purchasing and selling cryptocurrencies, a securities broker breached the Martin Act, a strict state legislation designed to combat financial fraud.
CoinEx represented itself as a legal global cryptocurrency ‘exchange’ without the state’s government permission, as Letitia James stated. This phenomenon emerged now because the CoinEx exchange flopped to submit evidence about the exchange’s digital crypto trading activities in January with the Attorney General.
CoinEx also listed AMP, LUNA, LBC, and $RLY, which are securities and commodities. Attorney General James seeks a court order that stops CoinEx from misrepresenting that it is an exchange, and prevents the company from operating in New York.
James said that “the days of crypto companies like CoinEx acting like the rules do not apply to them are over.”
Still, the Hong Kong-based crypto exchange CoinEx didn’t react immediately to this request.
Also read: NYDFS to charge Crypto Companies for their Supervision cost
