© Reuters. FILE PHOTO: Representations of cryptocurrency Bitcoin are seen on this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
By Jonathan Stempel
NEW YORK (Reuters) -CoinEx was sued on Wednesday by New York Legal professional Normal Letitia James, who accused the cryptocurrency change of transacting enterprise illegally as a result of it didn’t register with the state.
In papers filed with a New York state courtroom in Manhattan, James accused CoinEx of getting “engaged in repeated and protracted fraudulent practices.”
She mentioned CoinEx’s failure to register as a commodity broker-dealer, securities dealer or securities supplier earlier than shopping for and promoting tokens violated the Martin Act, a strong state legislation used to combat monetary fraud.
James additionally mentioned CoinEx held itself out with out state permission as a world cryptocurrency “change,” and failed final month to conform together with her subpoena for testimony about its digital asset buying and selling actions.
“The times of crypto firms like CoinEx performing like the principles don’t apply to them are over,” James mentioned in a press release.
CoinEx didn’t instantly reply to requests for remark.
The Hong Kong-based firm was based in 2017 and is often known as Vino World Ltd, in line with courtroom papers.
James’ civil lawsuit seeks restitution, and a ban on entry to CoinEx’s cell app, web site and companies from New York.
In January, New York and 9 different U.S. states secured as much as $24 million from the cryptocurrency firm Nexo Inc and an affiliate to resolve civil claims they transacted with out correct registration and lied about their registration standing.
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