Brooklyn-based crypto trading platform Coin Cafe will refund investors up to $4.3 million. NY State Attorney General Letitia James said the platform 'defrauded hundreds of New Yorkers ... due to a lack of effective regulation.' jesseahamilton reports
Brooklyn-based crypto trading platform Coin Cafe is paying back $4.3 million to defrauded investors, according to a Thursday statement from the New York Attorney General’s office, which accused the company of misleading customers about “exorbitant and undisclosed” fees.in January 2023, had advertised free wallet storage on its website, but it charged fees that sometimes entirely emptied investors’ accounts, the investigation concluded.
“Coin Cafe defrauded hundreds of New Yorkers out of thousands of dollars with its deceptive marketing and due to a lack of effective regulation,” said New York Attorney General Letitia James, in a statement. “This is yet another example of why the cryptocurrency industry needs to be better regulated, just like any other financial institution where New York investors put their hard-earned money.”
James’ office has been pushing state legislation seeking much more authority in the digital assets industry, which is currently handled primarily by the New York Department of Financial Services. Crypto insiders fear the new measures will make it much more difficult to do business in the state.The platform also illegally failed to register with the attorney general as a commodity broker-dealer, according to the agreement dated Thursday.
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