NEW YORK, Feb 22 (Reuters) – On Wednesday, New York Attorney General Letitia James filed a lawsuit against CoinEx, accusing the cryptocurrency exchange of conducting business illegally because it had not registered with the state.
In Papers filed in Manhattan, James alleged that CoinEx had “engaged in repeated and persistent fraudulent practices.”
She alleged that CoinEx’s failure to register as a commodity broker-dealer, securities brokerage or securities dealer before buying or selling tokens was a violation of the Martin Act, which is a powerful state law designed to combat financial fraud.
James noted that CoinEx was a global cryptocurrency exchange operating without state authorization. Last month, it failed to comply with her subpoena for evidence regarding digital asset trading.
“The days of crypto companies like CoinEx thinking that the rules do not apply to them are over,” James said in a statement.
CoinEx did not immediately respond to requests for comment.
The Hong Kong-based company was founded in 2017. It is also known as Vino Global Ltd., according to court documents.
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James’ civil suit seeks restitution and a ban on CoinEx’s mobile website, app, and services in New York.