SEC's Response to Challenge Groundbreaking XRP Ruling
U.S. Fed's Vice Chair Barr Suggests CBDC Decision Remains a ‘Long Way’
Turkish Crypto Exchange Thodex CEO Faruk Özer Sentenced to 11,196 Years in Prison for Collapse
Coin Cafe, a crypto trading platform located in Brooklyn, has been ordered by the New York Attorney General's office to reimburse defrauded investors with a sum of $4.3 million. The company was accused of deceiving its customers by concealing excessive and undisclosed fees, as stated in a press release issued on Thursday.
After being awarded a New York BitLicense in January 2023, the company faced allegations of deceptive practices. Coin Cafe, which had promoted free wallet storage on its website, was found to have imposed fees that occasionally resulted in the complete depletion of investors' accounts, according to the investigation's findings. In a settlement reached with the state authorities, Coin Cafe has committed to compensating the affected parties, which includes 340 investors in New York.
“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 actively advocating for state legislation aimed at obtaining greater control over the digital assets industry, an area that is predominantly regulated by the New York Department of Financial Services. However, individuals within the crypto community express concerns that these proposed measures will significantly impede conducting business within the state.
Customers of Coin Cafe who wish to obtain refunds are required to submit their requests within the next 12 months.
As per the agreement dated Thursday, the platform was found to have unlawfully neglected to register with the attorney general as a commodity broker-dealer. This discovery aligns with the attorney general's recent stringent enforcement actions against violations related to crypto registrations.
