Coin Cafe will pay $4.3 Milln for levying hidden commissions for the storage of bitcoins - Bits Media

At the request of the Prosecutor General of New York, Coin Cafe cryptocurrency platform will pay users compensation for the amount $4.3 Milln for hidden commissions, which were charged for storing bitcoins.

The Prosecutor General of New York claims, What Coin Cafe charged with users exorbitant fee for their caste, Although the platform website has been announced about free storage of crypto assets. It turned out, that from one resident of New York Coin Cafe received more $10 000 In one month, and from the other I levied more $51 000 during 13 months.

In October 2022 year Coin Cafe changed the structure of commission fees, charged with investors more 7,99% from the available amount or $99 in BTC for a month, if the investor did not buy, did not sell or did not transfer bitcoins on the platform for 30 days. In this way, Many investors gradually debuted money, until their balance has become zero.

The leadership of Coin Cafe agreed with the charges, that the platform regularly charged and raised the commission, without informing investors about this properly. As a result, Coin Cafe will pay compensation to all misleading users, And also more $508 000 for 340 local investors, In which the commissions were removed without their knowledge.

FROM 18 May leadership Coin Cafe will contact customers by e -mail, to notify them of the right to receive compensation. The platform is also obliged to limit the size of the commissions, charged for maintenance, to 0,002% for bitcoin per month, And henceforth, to fully reveal to investors such information.

“Coin Cafe deceived hundreds of New York residents for thousands of dollars, Using marketing tricks. This is another example of that, Why does the cryptocurrency industry need strict regulation, Like any other financial institution, where New York investors are hard to invest money earned. Every resident of New York deserves that, so that his investments are protected ", -said the general prosecutor of New York Leticia James (Letitia James).

As indicated in the press release of the department, Coin Cafe did not register as a broker-dealer at the Prosecutor General of New York, According to the law. In July 2015 years Coin Cafe has submitted an application to the Department of Financial Services of the state of New York (NYDFS) to receive a Bitlicense license, which was received only in January 2023 of the year.

The platform was allowed to work with virtual currencies for seven and a half years, While her application was under consideration by nydfs. but, In accordance with the legislation of New York, Brokers-deilers, having a Bitlicense license or waiting for its receipt, still obliged to register in the Prosecutor General's Office. Lack of registration in the department exposes the risk investors, James noted.

Recall, that at the beginning of the month the Prosecutor General of New York proposed introducing the law, which will expand its authority to regulate the crypto industry in the state. This will reduce cases of cryptocurrency fraud, James believes.