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New York Attorney General, Letitia James has filed a lawsuit against CoinEx, a cryptocurrency exchange, alleging that the company falsely represented itself as an exchange because it did not register as a securities and commodities broker-dealer in the state. [embed]https://twitter.com/NewYorkStateAG/status/1628517511497916416?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1628517513809076226%7Ctwgr%5E68166fb6513a8cd0d2900a18a500207dc8befacb%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fcoinex-crypto-exchange-sued-by-new-york-for-failing-to-register-with-state[/embed]
New York Attorney General's Lawsuit Against CoinEx
A 38-page petition filed by James in the New York Supreme Court on Feb. 22 alleges that CoinEx engaged in fraudulent practices, violated the state's strict anti-fraud and securities regulation laws, and listed tokens that qualified as both commodities and securities without being registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission as required under New York law. The lawsuit The Attorney General's Office conducted an investigation and created a CoinEx account with a New York-based address, which was able to trade on the platform.
Failure to Comply With James' December Subpoena
The petition states that CoinEx also failed to comply with a subpoena sent by the Attorney General's Office in December 2022 to “provide testimony concerning the virtual asset trading activities of its platform.” The Attorney General is seeking a court order to stop CoinEx from marketing itself as an exchange, prevent it from operating in the state, and geo-block internet addresses and GPS location data originating from New York.