NY AG Leticia James Sues Crypto Exchange Coin Ex for Fraud

• New York Attorney General Leticia James is suing Coin Ex, a crypto exchange that is reported to have conducted illegal business within the state.
• The company is accused of failing to comply with a subpoena last month and has been charged with fraudulently practices and failing to register as a commodity broker-dealer, security broker, or securities dealer.
• The lawsuit against Coin Ex follows another suit by James against former lending network Celsius which filed bankruptcy in late 2022.

Attorney General Sues Crypto Exchange

New York Attorney General Leticia James is suing digital currency company Coin Ex for alleged fraud and failure to follow registration protocols. Court documents suggest the company engaged in repeated „fraudulent practices“ and failed to register as a commodity broker-dealer, security broker, or securities dealer. It also allegedly bought and sold tokens that violated the Martin Act.

Coin Ex Fails To Comply With Subpoena

In addition to the fraudulent activity, Coin Ex was issued a subpoena last month for testimony about its activities and services but failed to comply. According to Leticia James: “The days of crypto companies like Coin Ex acting like the rules do not apply to them are over.“

Celsius Files Bankruptcy

This latest lawsuit from James follows another suit she issued recently against former lending network Celsius which filed bankruptcy in late 2022 after initially halting all withdrawals due to market speculation and volatility. James alleges that Celsius misused customer funds and engaged in fraudulent activity.

Crypto Fraud A Growing Issue In New York

The concern raised here is whether all these companies have taken part in legitimate illegal activity or if New York’s outlook on crypto has something to do with it all? It seems clear that cryptocurrency fraud is becoming an increasingly common issue in the state of New York which could be why Leticia James has been so aggressive when it comes to taking on digital currency firms like Coin Ex and Celsius.

Conclusion

With more cases of crypto fraud popping up around New York, it looks like these attempts by Leticia James may be effective at cracking down on criminal behavior within the space – though only time will tell if her efforts will make any tangible change or if they will just end up being posturing without consequence.