Hotest Blockchain News in First Media Index

Coin Cafe Ordered By New York AG to Pay Back $4.3M in Fraudulent Fees

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.

The company, granted a New York BitLicense in January 2023, had advertised free wallet storage on its website, but it charged fees that sometimes entirely emptied investors’ accounts, the investigation concluded. In an agreement with the state, Coin Cafe is paying back those harmed, including 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 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.

Coin Cafe customers who want the refunds must request them in the next 12 months.

The platform also illegally failed to register with the attorney general as a commodity broker-dealer, according to the agreement dated Thursday. The attorney general has recently been cracking down on crypto registration violations.

Coin Cafe did not immediately return requests for comment sent to company email addresses.

Recommended for you:
  • Metaverse NFT Trading Volume Hit New All-Time High, DappRadar Says
  • Donald Trump Announces $99 Digital Trading Card NFTs
  • XRP Surges to Five-Month High as Some Point to Bitcoin Commodities Mention

Read More: New York Attorney General Seeks New Crypto Powers for State Regulators

Edited by Nikhilesh De.


Hotest Cryptocurrency News

End of content

No more pages to load

Next page