• New York Attorney General Leticia James has filed a lawsuit against crypto exchange Coin Ex, alleging fraudulent practices and failure to register with the state.
• The court documents further suggest that the company bought and sold tokens in violation of the Martin Act.
• James’ legal action follows her lawsuit against former lending network Celsius, which entered bankruptcy in late 2022.
New York AG’s Suit Against Crypto Exchange
New York Attorney General Leticia James is suing another digital currency company – this time it’s Coin Ex, an alleged cryptocurrency exchange that failed to engage in proper New York registration protocols. Court documents suggest that the company repeatedly engaged in fraudulent practices as well as buying and selling tokens that violated the Martin Act. In addition, Coin Ex allegedly failed to comply with a subpoena last month regarding its present activities and services.
Coin Ex Accused of Fraudulent Practices
In a statement, James said: “The days of crypto companies like Coin Ex acting like the rules do not apply to them are over.“ The attorney general has been on a mission to take down digital currency firms she believes have taken part in illegal activity. Her most recent lawsuit follows one against former lending network Celsius, which filed for bankruptcy in late 2022 after halting all withdrawals due to market speculation and volatility at the time.
Celsius Sued Over Misuse of Customer Funds
James‘ initial case against Celsius accused them of misusing customer funds and engaging in fraudulent activities. This prompted questions over how far their problems extended and if customers would ever be able to retrieve their money again. With regards to Coin Ex, it remains unclear how much evidence there is surrounding any potential wrong-doing or why they were specifically targeted by James‘ office.
New York’s Unfavorable Crypto Climate
The situation highlights New York’s unfriendly climate towards cryptocurrencies despite its status as one of America’s financial hubs for traditional currencies such as dollars or euros. People have questioned whether James is taking on too much by tackling these companies alone or if her actions are justified based on reliable evidence of criminal activity within them?
It appears that Leticia James isn’t slowing down anytime soon when it comes to targeting digital currency companies – whether they deserve it or not! As more information emerges surrounding alleged fraud taking place within these firms, we will get a better understanding of where exactly justice lies, but until then we’ll just have to wait and see what happens next!