CryptoMediaClub
Saturday, July 5, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Bitcoin

Coin Cafe to repay $4.3M in fees that ‘wiped out’ investors’ Bitcoin accounts

19.05.2023
A A
0
128
VIEWS
ShareShare

Cryptocurrency trading platform Coin Cafe has been ordered to repay $4.3 million to its users after allegedly charging “exorbitant and undisclosed fees" for storing Bitcoin on the platform — leading to some accounts being drained entirely of its funds.

Based in Brooklyn, Coin Cafe initially filed an application for a virtual currency license with the New York State Department of Financial Services in July 2015; however, it was only approved in January this year.

Despite the seven-and-a-half-year application process, Coin Cafe was allowed to operate throughout but was flagged as putting “investors at risk,” as it didn’t uphold its obligation to register with the Office of the Attorney General for New York — which all New York broker-dealers are required to do so.

On May 18, it was revealed that the exchange had been charging “exorbitant” fees for storing Bitcoin without properly informing investors, leading to some cases in which investors’ accounts were wiped out entirely, according to New York State Attorney General Letitia James.

In a statement, James said Coin Cafe defrauded “hundreds of New Yorkers” out of thousands of dollars, routinely charging and increasing “fees without properly informing investors.”

One New York investor incurred fees exceeding $10,000 in a single month, while another investor was hit with fees amounting to $51,000 over a span of 13 months. It was noted:

“The company was charging investors exorbitant and undisclosed fees to use its wallet storage, despite marketing its wallet storage as ‘free’ on its website.”

The Office of the Attorney General’s investigation revealed that Coin Cafe changed the fee structure four times since September 2020, without ever “clearly telling investors of the increase.”

This is another example of why my office proposed commonsense measures to regulate the cryptocurrency industry and protect people from fraud.https://t.co/G5XkasCfhA

— NY AG James (@NewYorkStateAG) May 18, 2023

The “most drastic fee structure change” occurred in October 2022, when investors were charged a fee for inactivity. It stated:

“It charged investors the greater of 7.99 percent of the account or $99 worth of Bitcoin per month if an investor did not buy, sell, or transfer Bitcoin on the Coin Cafe site within 30 days.”

James criticized the “deceptive marketing” involved, but also highlighted the “lack of effective regulation” as a contributing factor.

“This is yet another example of why the cryptocurrency industry needs to be better regulated,” James stated.

Related: US lawmakers hold EU and UK as examples of crypto regulation in joint hearing

In a settlement, Coin Cafe is required to refund all fees to U.S.-based investors who request a refund within the next year.

The platform is also obligated to notify all U.S-based customers of their eligibility for a refund via email by May 23.

Cointelegraph reached out to Coin Cafe for comment but did not receive a response by the time of publication.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Share10Tweet6ShareSharePin2

Related Posts

Crypto Fear & Greed Index Soars to 73: Unpacking the Market’s Bullish Confidence
Bitcoin

Crypto Fear & Greed Index Soars to 73: Unpacking the Market’s Bullish Confidence

03.07.2025
0

BitcoinWorldCrypto Fear & Greed Index Soars to 73: Unpacking the Market’s Bullish Confidence The pulse of the digital asset world...

Read moreDetails
Bitcoin Treasury Strategy Unlocks $24.75 Million for Green Minerals’ Ambitious Growth

Bitcoin Treasury Strategy Unlocks $24.75 Million for Green Minerals’ Ambitious Growth

02.07.2025
Celsius Lawsuit: Judge Unleashes Crucial Legal Battle Against Tether Over $4 Billion Bitcoin Liquidation

Celsius Lawsuit: Judge Unleashes Crucial Legal Battle Against Tether Over $4 Billion Bitcoin Liquidation

02.07.2025
Bitcoin’s Momentum Challenge: Why the Epic BTC Rally Faces Profit-Taking Pressures

Bitcoin’s Momentum Challenge: Why the Epic BTC Rally Faces Profit-Taking Pressures

01.07.2025
Bitcoin’s Astonishing Evolution: A New Trading Pattern Emerges

Bitcoin’s Astonishing Evolution: A New Trading Pattern Emerges

01.07.2025
Load More
Next Post
XRP Bulls Eye on $0.50, Will the Trend Keep It in Top Gainers Spot?

XRP Bulls Eye on $0.50, Will the Trend Keep It in Top Gainers Spot?

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Bitcoin Proponent Robert F. Kennedy Announces Run for President of the USA

Bitcoin Proponent Robert F. Kennedy Announces Run for President of the USA

2 years ago
Mastercard Strengthens Cross-Border Payments in MENA

Mastercard Strengthens Cross-Border Payments in MENA

8 months ago
Spetz Funding Boosts Sonic Network Security with $7.35M for Tokens & Validators

Spetz Funding Boosts Sonic Network Security with $7.35M for Tokens & Validators

1 month ago
Hague Legal Body Launches Digital Asset Tokenization Project to Tackle Cross-Border Challenges

Hague Legal Body Launches Digital Asset Tokenization Project to Tackle Cross-Border Challenges

1 year ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Crypto Price Prediction Today 4 July – XRP, Shiba Inu, Pepe

XRP Price Prediction: Swiss Bank Embraces Ripple’s RLUSD – Billions Flowing into XRP?

ChatGPT’s 42-Signal TRX Analysis Flags Corporate Treasury Milestone

Google’s Gemini AI Predicts the Price of XRP, Solana and Cardano by the End of 2025

ChatGPT’s 42-Signal DOGE Analysis Flags Key $0.155 Support Test Amid Musk Drama

XRP Ledger logs 34% in RWA monthly growth, eyes bigger boost from Mercado Bitcoin partnership

Trending

Glassnode’s James Check Warns Bitcoin Treasury Boom Could Be Short-Lived
All news

Glassnode’s James Check Warns Bitcoin Treasury Boom Could Be Short-Lived

05.07.2025
0

Glassnode lead analyst James Check has raised concerns over the longevity of the corporate Bitcoin treasury strategy,...

Crypto Traders on Alert as Sweden Expands Law to Seize Digital Assets

Crypto Traders on Alert as Sweden Expands Law to Seize Digital Assets

05.07.2025
Sanctioned Russian Giant Rostec Bypasses Banks with Tron-Based RUBx Stablecoin

Sanctioned Russian Giant Rostec Bypasses Banks with Tron-Based RUBx Stablecoin

05.07.2025
Crypto Price Prediction Today 4 July – XRP, Shiba Inu, Pepe

Crypto Price Prediction Today 4 July – XRP, Shiba Inu, Pepe

05.07.2025
XRP Price Prediction: Swiss Bank Embraces Ripple’s RLUSD – Billions Flowing into XRP?

XRP Price Prediction: Swiss Bank Embraces Ripple’s RLUSD – Billions Flowing into XRP?

05.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz