The New York Attorney General has filed a lawsuit against CoinEx, one of the leading crypto exchanges, over allegations of operating in the state without proper registration.

According to the petition filed in the Supreme Court of the State of New York on Wednesday, CoinEx has been offering trading services to New York residents without obtaining the required license from the state's Department of Financial Services (DFS). The complaint claims that the exchange has engaged in activities that require it to be registered as a money transmitter in New York, including the exchange of cryptocurrencies for fiat currency. The filling stated:

“CoinEx offered, sold, purchased and effected transactions in cryptocurrencies that are commodities and securities, without having been registered as a commodity broker dealer and a securities broker or dealer in New York” 

The lawsuit further alleges that CoinEx has failed to implement adequate measures to prevent market manipulation, and has not provided sufficient disclosures regarding the risks associated with trading cryptocurrencies. The Attorney General's office also claims that CoinEx has not provided proper customer support and has not implemented adequate security measures to protect user data and funds.

The court filing seeks a court order requiring CoinEx to comply with the state's registration requirements, as well as seeking restitution for affected New York residents and civil penalties. The Attorney General's office has stated that it is committed to protecting investors and consumers in the cryptocurrency market and will take action against any entity that violates the state's laws.

CoinEx has not yet issued a statement in response to the lawsuit.