Cryptocurrency trade CoinEx has been sued by New York Lawyer Common Letitia James, who alleges the agency falsely represented itself as an trade by failing to register as a securities and commodities broker-dealer within the state.
A 38-page petition filed by James within the New York Supreme Courtroom on Feb. 22 alleged CoinEx “engaged in repeated and protracted fraudulent practices” and violated the state’s Martin Act — thought of probably the most strict anti-fraud and securities regulation legal guidelines in the USA.
She additionally asserted CoinEx listed varied tokens that certified as “each commodities and securities,” naming Amp (AMP), LBRY Credit (LBC), Rally (RLY) and Terra (LUNA).
When crypto platforms disregard our legal guidelines, they put New Yorkers in danger.
We’re in search of to cease @coinexcom from working in New York and can proceed to guard folks from the hazards of the cryptocurrency trade.
— NY AG James (@NewYorkStateAG) February 22, 2023
In a Feb. 22 statement, James stated that CoinEx is just not registered with the Securities and Alternate Fee or the Commodity Futures Buying and selling Fee, “as is required underneath New York legislation” to promote the tokens.
The Lawyer Common’s Workplace created a CoinEx account with a New York-based pc and web tackle and alleged it was in a position to commerce on the platform.
“The times of crypto firms like CoinEx appearing like the principles don’t apply to them are over,” she added.
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The petition additionally states that CoinEx did not adjust to a Dec. 22 subpoena despatched by the Lawyer Common’s Workplace with a view to “present testimony in regards to the digital asset buying and selling actions of its platform.”
“CoinEx was compelled by subpoena to look for an examination underneath oath on January 9, 2023, and failed to look […] CoinEx’s non-appearance is prima facie proof that CoinEx has engaged within the [mentioned] fraudulent practices.”
Within the petition, James is in search of a courtroom order to cease CoinEx from advertising and marketing itself as an trade and forestall it from working within the state by ordering it to geoblock web addresses and GPS location knowledge originating from New York.
Cointelegraph contacted CoinEx for remark however didn’t obtain a right away response.