A PYMNTS Company

CoinEx Taking ‘Active Steps’ To Address New York Attorney General Suit

 |  February 27, 2023

CoinEx says it is taking measures to address claims it’s operating illegally in New York. The crypto exchange made that announcement after New York Attorney General Letitia James sued CoinEx for selling unregistered digital assets in the state.

The lawsuit, which seeks court permission to bar CoinEx from doing business in the state, is the latest example of law enforcement regulators shining a harsher light on the crypto sector.

“Given the recent lawsuit against CoinEx for allegedly operating an unregistered cryptocurrency exchange, we are paying high attention to the allegations and taking active steps to address New York Attorney’s concerns promptly,” the company said on Twitter.

CoinEx did not provide specifics about what those steps were. PYMNTS has reached out to the company for comment but has not yet received a reply.

Read more: NY AG Sues Crypto Platform For Failing To Register

According to the lawsuit, the office of Attorney general was able to buy and sell crypto on coinbase in New York, even though the exchange is not registered in the state.

“Our laws are designed to protect New Yorkers, and when companies ignore them, they put residents, investors, and businesses at risk,” said state Attorney General Letitia James. “The days of crypto companies like CoinEx acting like the rules do not apply to them are over.”

CoinEx said in its announcement that it had “always attached great importance to regulatory compliance” and aims to become a “safe and reliable cryptocurrency exchange.”

James’ office has taken a number of actions against the crypto industry in the past year. In January, she sued former Celsius CEO Alex Mashinsky, claiming he made false and misleading statements about the cryptocurrency lending platform’s safety and hid its deteriorating financial condition from the public.

Last year, her office sued the crypto firm Nexo, claiming it was operating illegally and had defrauded investors. That suit came as regulators from New York and seven other states took action against the company for offering an unregistered product.