Hong Kong-based CoinEx to exit New York, pay $1.7M in NYAG settlement

CoinEx agreed to settle with the New York Attorney General’s office after being accused of failing to register as a securities and commodities broker-dealer

article-image

New York Attorney General Letitia James | lev radin/Shutterstock modified by Blockworks

share

CoinEx, a Hong Kong-based crypto trading platform, has agreed to pay out $1.7 million to the New York Attorney General and cease operations in New York. 

Of the $1.7 million sum, $1.1 million will go toward refunds for nearly 4,700 New Yorkers. The other $600,000 will go to pay state penalties. 

The exchange is Tether-based, and predominantly trades bitcoin (BTC) and USDT, with no USD pairings. 

The New York Attorney General’s office sued CoinEx back in February, alleging that it violated the Martin Act by not registering with the state. 

The Martin Act — established in 1921 — makes it illegal for anyone offering to sell or selling securities as a dealer, broker or salesman without registration. 

Because CoinEx claimed to be an exchange and wasn’t registered with either the Commodities Futures Trading Commission or the SEC, it was in violation of the Act, the New York Attorney General’s office claims.

“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,” NY Attorney General Letitia James said in the press release. 

The CoinEx settlement is the latest case in a string of crypto-related suits and settlements — including one against KuCoin — brought forth by the New York Attorney General’s office. The attorney general has also expressed plans to bring a bill to state legislators which would require crypto firms to complete audits, submit financial statements and boost fraud protection.

“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,” James said in May.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Unlocked Advisory-min.png

Research

This report distills Blockworks Advisory’s research on incentive programs and their analysis, offering a foundation for designing future initiatives and advancing industry-wide standards. By highlighting key lessons and methodologies, we aim to empower protocols to make informed, data-driven decisions.

article-image

More momentum could drive BTC past the six-figure price mark — albeit not without volatility

article-image

The HAWK token crashed 87% around 30 minutes after launching

article-image

The company did about 2.5 times the amount of crypto-backed collateral financing in November compared to the rest of 2024, exec says

article-image

Programmable yield, seamless swaps and decentralized control are the hallmarks of a new stablecoin model

article-image

Crypto is “really exciting,” former SEC Commissioner Paul Atkins said in a podcast interview last year

article-image

Bitcoin is now the “seventh most valuable asset in the world by market cap, just behind the likes of Google and Amazon,” GSR’s Brian Rudick said