In a significant development in the cryptocurrency industry, CoinEx, a Hong Kong-based crypto exchange, has been banned from operating in New York by Attorney General Letitia James. The ban comes as a result of CoinEx's failure to register as a broker-dealer and its alleged false representation as a crypto exchange. The New York Attorney General's office has taken action against CoinEx, and as part of the resolution, $1.7 million worth of the exchange's funds have been seized.

New York bans CoinEx Exchange, seizing $1.7 million in cryptocurrencies.
Image: GitHub

Failure to Register and False Representation

The Attorney General's office accused CoinEx of failing to register as a securities and commodities brokerage and falsely representing itself as an exchange. CoinEx allegedly operated without the necessary registrations and approvals required by the local authorities. These actions led to the initiation of a lawsuit against CoinEx in February, which has now been resolved with the recent ban and fund seizure.

Consequences and Penalties

As a result of the ban, CoinEx is prohibited from offering, selling, or purchasing securities and commodities in New York. The exchange's platform is also banned from operating in the state. In addition to the ban, CoinEx is required to implement geo-blocking measures to prevent access from New York IP addresses and is forbidden from creating new accounts for customers based in the United States.

Furthermore, CoinEx is obligated to pay penalties and refunds. Over $1.1 million will be returned to 4,691 New York investors, and an additional amount exceeding $600,000 will be paid as penalties to the state. These measures serve as a warning to crypto companies that disregarding New York's laws can result in severe consequences, and the Attorney General's office is committed to cracking down on such companies to protect investors and ensure compliance.

Recovering Funds and Future Steps

CoinEx users will have the opportunity to recover their crypto funds directly from the exchange within the next 90 days. After this period, eligible investors will be able to request funds in fiat currency by emailing The refund process will cover cryptocurrency or cash equivalents held in accounts as of April 25, 2023.

The ban and fund seizure are part of the New York Attorney General's ongoing efforts to combat fraudulent practices in the cryptocurrency market and protect investors. By taking action against CoinEx, the Attorney General's office sends a strong message to the crypto industry that non-compliance and misleading practices will not be tolerated, emphasizing the importance of adhering to regulations and protecting the interests of investors.


The ban of CoinEx, a Hong Kong-based crypto exchange, by the New York Attorney General's office highlights the consequences of failing to register as a broker-dealer and falsely representing oneself in the cryptocurrency industry. With the seizure of $1.7 million in funds, CoinEx faces significant penalties and refunds to investors in New York. This action serves as a warning to other crypto companies, emphasizing the importance of compliance with regulations and the protection of investors. As the crypto industry continues to evolve, regulatory authorities remain vigilant in their efforts to maintain integrity and investor confidence.



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