• New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange Coinex, alleging that the platform has failed to register as a securities and commodities broker-dealer and is falsely representing itself as a crypto exchange.
• The NYAG alleges that Coinex offers trading of crypto tokens that are securities and commodities without registering with the U.S. Securities and Exchange Commission (SEC).
• The state’s Martin Act gives the attorney general broad law-enforcement powers to conduct investigations of suspected fraud in the offer, sale, or purchase of securities.
New York Attorney General Sues Crypto Exchange Coinex
New York Attorney General Letitia James has sued cryptocurrency exchange Coinex „for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.“ The NY attorney general also stressed that Coinex is not registered with the U.S. Securities and Exchange Commission (SEC) even though the platform lets users trade crypto tokens that are allegedly securities.
Coinex Violates New York Law, Says NYAG Letitia James
The office of New York Attorney General (NYAG) Letitia James announced Wednesday that the attorney general has sued cryptocurrency trading platform Coinex „for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.“ The announcement details: The Office of the Attorney General (OAG) was able to buy and sell cryptocurrencies on Coinex in New York, although the company is unregistered in the state, which is a violation of New York’s Martin Act. The OAG explained that it created an account with Coinex using a computer with a New York-based IP address to buy and sell cryptocurrencies, which Coinex charged a fee for. The state’s Martin Act gives the attorney general broad law-enforcement powers to conduct investigations of suspected fraud in the offer, sale, or purchase of securities.
Coinex Allegedly Offers Securities Trading Without Registering With SEC
The NY Attorney General’s Office also stated that „Coinex claimed to be an exchange, but is not registered with the Securities and Exchange Commission (SEC) as a national securities exchange or appropriately designated by the Commodity Futures Trading Commission (CFTC) as is required under New York law.“ Furthermore, „Coinex also failed to comply with a subpoena issued by OAG to provide more information about its digital asset trading activities in the state,“ according to the announcement.
Attorney General Seeks Court Order To Stop Misrepresentation
The Attorney General’s Office further alleged that Coinex offers trading of crypto tokens that are securities and commodities – naming AMP , LUNA , LBC ,and RLY in particular . Through her lawsuit , Attorney General James seeks court order preventing misleading statements made by CoinEx . She further wants CoinEx stop from offering services without being registered first .
Conclusion
This article discussed how NewYork attorney general sued cryptocurrency exchange called CoinEx for not registering itself properly . It highlighted how CoinEx allegedly offerd services without registration from appropriate authorities like US Securities & Exchange commission & Commodity Future Trading commission . Lastly , it concluded on how AG sought court order for stopping misrepresentation & other services offered by CoinEx without registration .