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Crime and Investigations

CoinEx Faces Lawsuit for False Representation as Exchange and Fraudulent Practices

CoinEx Faces Lawsuit for False Representation as Exchange and Fraudulent Practices

New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange CoinEx, accusing the company of falsely presenting itself as an exchange by not registering as a securities and commodities broker-dealer in the state.

The 38-page petition filed by James in the New York Supreme Court on Feb. 22 accuses CoinEx of engaging in fraudulent practices and violating the state’s strict Martin Act, which governs securities regulation and anti-fraud laws in the US.

The lawsuit also alleges that CoinEx listed several tokens that are considered both commodities and securities, including AMP, LBC, RLY, and LUNA. James stated that CoinEx is not registered with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), as required by New York law to sell tokens.

The lawsuit seeks a court order to prohibit CoinEx from marketing itself as an exchange and operating in the state by blocking internet addresses and GPS location data from New York.

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CoinEx failed to comply with a subpoena from the Attorney General’s Office in December, which led to the suspicion that the company had engaged in fraudulent practices.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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