NY AG Sues Crypto Platform For Failing To Register

Attorney General Letitia James sued CoinEx for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.

Read more: ECB Chair: Regulating Crypto Asset Platforms An ‘Interesting Challenge’

CoinEx says it is taking measures to address claims it’s operating illegally in New York.

The crypto exchange made that announcement Thursday (Feb. 23), one day 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 CoinExfrom 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.

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.”