CoinEx to refund thousands in settlement with NY Attorney General.

The cryptocurrency firm CoinEx has reached a settlement with New York Attorney General Letitia James, agreeing to refund over $1.7 million to thousands of New York investors and pay penalties to the state. In addition, CoinEx is now banned from operating in the state, according to a statement released by James’ office on Thursday.

James warned other crypto companies that there are serious consequences for ignoring New York’s laws. She said, “My office will continue to crack down on crypto companies that brazenly disregard the law, mislead investors, and put New Yorkers at risk.”

In February, James sued CoinEx for allegedly failing to register with the state of New York and for falsely representing itself as a crypto exchange. In that lawsuit, James also claimed that cryptocurrencies AMP, LUNA, LBC, and $RLY were securities and commodities.

New York crackdown

Last month, James announced legislation that would require refunds for customers and audits of cryptocurrency exchanges. Her program bill proposes the strongest and most comprehensive set of regulations on cryptocurrency in the nation, according to a statement released by her office. New York already has robust regulations in place, such as BitLicense, a business license permitting regulated virtual currency activities.

The state has also taken other actions against crypto firms. In March, it brought an action against crypto exchange KuCoin for allegedly failing to register with the state. Notably, in that action, James named ether as a security, marking the first time a regulatory official in the US has referred to ether as being a security.

James has also accused crypto lender Celsius’ former CEO Alex Mashinsky of misleading investors about the financial health of the company. Celsius filed for bankruptcy in July. Her office has also ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees last month. As part of that settlement, Coin Cafe agreed to compensate the affected users, which included 340 investors in New York.

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