The state of New York has taken another step in its regulatory crackdown on cryptocurrency firms, with CoinEx being the latest target.

New York Attorney General Letitia James sued CoinEx earlier this year for operating illegally in the state. As a result, the cryptocurrency exchange is now banned from offering its trading services to New York residents.

The Attorney General’s office has also recovered over $1.7 million from CoinEx for its failure to register as a securities and commodities broker-dealer.

According to the New York Attorney General, CoinEx falsely portrayed itself as a legitimate cryptocurrency exchange, enticing investors without proper registration. This deceptive practice has led to significant consequences for the exchange.

As part of the resolution, approximately $1,172,971 in various crypto assets will be refunded to 4,691 New York investors.

The remaining $600,000 will be paid as penalties to the state of New York. The Attorney General’s office has informed affected investors that they will receive their refunds directly from CoinEx within the next 90 days.

The remaining investors will be refunded in US currency based on the snapshot taken on April 25, 2023.

CoinEx has been ordered to implement geo-blocking measures to prevent New York IP addresses from accessing its platform.

Furthermore, the exchange is required to cease creating new customer accounts from the United States. Existing US customers can only withdraw their digital assets from the exchange but cannot make new deposits.

The New York Attorney General emphasized that unregistered crypto platforms pose risks to investors, consumers, and the economy as a whole.

The resolution with CoinEx serves as a stern warning to other crypto companies that disregarding New York’s laws carries significant consequences.

The Attorney General’s office will continue to crack down on crypto firms that violate regulations, mislead investors, and put New Yorkers at risk.

New York’s Regulatory Actions: The case against CoinEx marks another success for the New York Attorney General’s office in its efforts to enforce financial regulations in the cryptocurrency industry.

To date, the state of New York has recovered over $500 million from the cryptocurrency industry for non-compliance with local regulations.

The New York Attorney General has charged several crypto exchanges for listing and providing services related to unregistered securities.

Additionally, the state of New York has publicly alleged that Ethereum (ETH) is a security. Last month, the Attorney General’s office proposed a range of regulations aimed at protecting investors in the cryptocurrency industry.