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HomeExchange NewsCoin Ex Settles Suit in New York, Vows to Leave the U.S.

Coin Ex Settles Suit in New York, Vows to Leave the U.S.

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Coin Ex is a digital currency exchange based in Hong Kong. Not long ago, the company was faced with a lawsuit from New York Attorney General Leticia James, who said the firm had violated various financial laws and put traders and investors in danger.

Coin Ex Settles, Set to Exit America

Now, it looks like Coin Ex has agreed to settle with James for nearly $2 million to get the suit off its back. In addition, the company is also ceasing all its U.S. operations, and the American branch of the exchange is facing imminent shutdown.

The lawsuit against Coin Ex was filed in February of this year. Allegations came about that the company had violated what’s known as the Martin Act, which was enacted in 1921 (over 100 years ago). The law disallows the selling and offering of any securities by companies that haven’t registered as dealers, brokers, or salesmen within specific regions or states (in this case, New York).

By allegedly failing to register either with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), the company was in violation of the Act and therefore subject to penalties. Leticia James issued a statement regarding the matter that read:

Today’s agreement should serve as a warning to crypto companies that there are hefty consequences for ignoring New York’s laws. My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk… Rampant fraud and dysfunction have become the hallmarks of cryptocurrency, and it is time to bring law and order to the multi-billion-dollar industry.

Coin Ex has also mentioned that while the lawsuit ultimately contributed to the decision to leave the U.S., the regulatory atmosphere in America has become too convoluted and confusing for it to handle anymore. Thus, the country will no longer be privy to the exchange’s services or product offerings.

So Many Crypto Companies Victimized

This sentiment is shared by several digital asset enterprises at the time of writing. For the past several months, agencies like the SEC have employed harsh methods of enforcing regulation. For example, the SEC has filed major lawsuits against large crypto companies like Coinbase, Binance, and Kraken. Not long ago, Coinbase even opened an office in Bermuda and said it would be focusing more on international crypto trading and activities until the U.S. can get its rules and priorities in place.

Also, Leticia James can act like she’s concerned for investors’ safety all she wants, but the fact remains that, like the SEC, she’s simply made a habit of going after crypto every chance she can. Several firms – including Nexo and Ku Coin – have fallen victim to her wrath and been subjected to heavy financial penalties or other punishments.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

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