Coin Cafe Ordered to Repay $4.3M in Fraudulent Fees by New York AG.

AI Games Airdrop is Live! Claim an Instant 10,000 AIG Tokens ($100 Value) for Free. AIG Listing on Bybit & Kucoin. Join the Airdrop On PlayAiGames.Online

“The New York Attorney General’s office has announced an agreement with the trading platform. As part of the agreement, the platform will refund fees to investors that were overcharged and deceived”

Coin Cafe, a crypto trading platform based in Brooklyn, has been ordered by the New York Attorney General’s office to reimburse defrauded investors. The company is returning a total of $4.3 million to the affected individuals. The Attorney General’s office accused Coin Cafe of misleading customers by not disclosing excessively high fees. This action aims to rectify the situation and provide compensation to those who were deceived.

Coin Cafe, which obtained a New York BitLicense in January 2023, advertised free wallet storage on its website. However, during the investigation, it was discovered that the company actually charged fees that sometimes resulted in completely depleting investors’ accounts. As part of an agreement with the state, Coin Cafe is now compensating those affected, including 340 investors in New York, who suffered financial harm due to the misleading fees.

New York Attorney General Letitia James stated that Coin Cafe deceived hundreds of New Yorkers and caused them to lose thousands of dollars due to misleading marketing practices. She emphasized the need for improved regulation in the cryptocurrency industry, comparing it to other financial institutions where individuals trust their hard-earned money. This case highlights the importance of protecting investors and ensuring proper oversight in the cryptocurrency sector.

Attorney General Letitia James’ office has been advocating for state legislation to gain greater control over the digital assets industry. Currently, the New York Department of Financial Services primarily oversees this sector. However, some individuals involved in the cryptocurrency industry are concerned that these new measures could significantly impede business operations within the state.

Customers of Coin Cafe who wish to receive refunds must submit their requests within the next 12 months.

As per the agreement dated Thursday, the platform, Coin Cafe, unlawfully neglected to register with the attorney general as a commodity broker-dealer. The attorney general has recently been taking strict action against violations related to crypto registration.

This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.


  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

    View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *