New York Attorney General Letitia James has filed a 38-page petition against cryptocurrency exchange CoinEx, alleging that the exchange falsely represented itself as an exchange and failed to register as a securities and commodities broker-dealer in the state.
According to James, CoinEx “engaged in repeated and persistent fraudulent practices” and violated the state’s Martin Act, considered one of the strictest anti-fraud and securities regulation laws in the United States.
The petition also claims that CoinEx failed to comply with a Dec. 22 subpoena sent by the Attorney General’s Office.
In response, James is seeking a court order to stop CoinEx from marketing itself as an exchange and prevent it from operating in the state by ordering it to geoblock internet addresses and GPS location data originating from New York.
