CoinEx, one cryptocurrency exchange, has been sued by New York Attorney General Letitia James, who alleges the company falsely presented itself as an exchange by failing to register as a stock and commodity broker with the state. James’ allegations can be found in the lawsuit.

James filed a 38-page petition with the New York Supreme Court on February 22, alleging that CoinEx “engaged in repeated and persistent fraudulent practices” and violated the state’s Martin Act, which is widely regarded as one of the most strict against fraud. and securities regulation laws in the United States. The petition was filed in response to a previous complaint that CoinEx had violated the Martin Act.

In addition to this, he said that CoinEx was a marketplace that offered a variety of tokens, including Amp (AMP), LBRY Credits (LBC), Rally (RLY), and Terra, which qualified as “trade and security” (LUNA).

James noted in a statement that CoinEx is not registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission, “as is required under New York law,” to sell the tokens. James made this statement on February 22.

The Attorney General’s Office is said to have opened a CoinEx account using a computer and internet address located in New York State and was able to engage in trading on the platform.

He went on to say that the days when cryptocurrency companies like CoinEx behaved as if the regulations did not apply to them are long gone.

Additionally, the petition alleges that CoinEx failed to comply with a subpoena sent by the Attorney General’s Office on December 22. The subpoena required CoinEx to “provide testimony regarding its platform’s virtual asset trading operations.”

“CoinEx was subpoenaed to appear for an examination under oath on January 9, 2023 and failed to appear. CoinEx’s non-appearance is prima facie evidence that CoinEx has engaged in the [mentioned] fraudulent practices”. [Citation needed] “CoinEx was compelled by subpoena to appear for an examination under oath on January 9, 2023, and failed to appear.”

James is seeking an injunction to prevent CoinEx from marketing itself as an exchange and from operating in the state by ordering it to geo-block Internet addresses and GPS location data originating in New York. The petition can be found here. James is also seeking an injunction to prevent CoinEx from operating in the state.