Crypto Exchange CoinEx violated state company registration laws.
According to CoinEx, which was founded in December 2017, its 30-day transaction value was $13.66 billion.
With state authorities were alleged against CoinEx.
When the Securities and Exchange Commission (SEC) of the United States cracked down on cryptocurrency enterprises, scrutiny of crypto players has continued in the country. A recent complaint on regulatory compliance was made against a cryptocurrency exchange by a New York attorney. Global regulatory agencies increased their efforts to standardise the crypto market's rules after the FTX collapse in November 2022. Notwithstanding the crackdown, US regulators have been charged with merely upholding the law without providing any clarification on the legal status of cryptocurrencies.
According to a report from Reuters, Letitia James, the attorney general of New York, is suing cryptocurrency exchange CoinEx for breaking local regulations. The lawyer highlighted the Martin Act, a New York anti-fraud legislation that gives the Attorney General the authority to take action against dishonest participants, as being broken by the deal. According to the report, CoinEx's failure to register with the state was the reason for the claims.
On Wednesday, a complaint regarding a breach of the Martin Act was submitted to a New York state court in Manhattan. CoinEx, which was established in December 2017, states that its 30-day transaction value was $13.66 billion.
A New York regulatory body ordered Paxos to halt producing Binance USD (BUSD) on February 23, 2023, citing the stablecoin as an unregistered security.
