{"id":11517,"date":"2023-05-20T20:05:32","date_gmt":"2023-05-21T00:05:32","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/ny-attorney-general-secures-4-3-million-refund-for-coin-cafe-customers-misled-by-hidden-fees\/"},"modified":"2023-05-20T20:05:32","modified_gmt":"2023-05-21T00:05:32","slug":"ny-attorney-general-secures-4-3-million-refund-for-coin-cafe-customers-misled-by-hidden-fees","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=11517","title":{"rendered":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees"},"content":{"rendered":"
\n

The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0<\/p>\n

In a Thursday\u00a0announcement, Attorney General Letitia James revealed that it has secured $4.3 million for Coin Cafe users after the company charged \u201cexorbitant and undisclosed fees” for storing crypto on its platform.<\/p>\n

Coin Cafe, which initially filed an application for a virtual currency license with the New York State Department of Financial Services back in 2015, acquired a BitLicense just earlier this year.\u00a0<\/p>\n

The platform allegedly misled investors by charging fees that sometimes entirely emptied investors\u2019 accounts despite claims that it offered free wallet storage.<\/p>\n

As per the settlement with the state, Coin Cafe has agreed to compensate the affected users, which includes 340 investors in New York.<\/p>\n

\u201cCoin Cafe defrauded hundreds of New Yorkers out of thousands of dollars with its deceptive marketing and due to a lack of effective regulation,\u201d James said in a statement.<\/p>\n

\n

\u201cThis 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.\u201d<\/p>\n<\/blockquote>\n

The filing claimed that 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.<\/p>\n

James further revealed that Coin Cafe changed the fee structure four times since late 2020, without ever \u201cclearly telling investors of the increase.\u201d<\/p>\n

The \u201cmost drastic fee structure change\u201d occurred in October 2022, when investors were charged a fee for inactivity, the Office of the Attorney General said.\u00a0<\/p>\n

\n

\u201cIt 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.\u201d<\/p>\n<\/blockquote>\n

Under the settlement terms, Coin Cafe is obliged to reimburse all fees to investors based in the US who demand repayment within the next 12 months.\u00a0<\/p>\n

Additionally, the platform is required to inform all US-based clients about their qualification for a refund via email no later than May 23.<\/p>\n

New York Advocates for More Crypto Regulation<\/h2>\n

New York is among the few states that require businesses that engage in the transmission of fiat currency as well as a virtual currency to have both a BitLicense and a traditional money transmitter license.\u00a0<\/p>\n

The New York State Department of Financial Services, the state’s main financial regulator, has also released a series of crypto-related directives over the past year.\u00a0<\/p>\n

Earlier this year, the regulator\u00a0released\u00a0new guidance that mandates companies to separate their own crypto assets from that of customers.<\/p>\n

The move came after it was revealed that there was co-mingling of funds between the now-bankrupt cryptocurrency exchange FTX and its trading arm Alameda Research.\u00a0<\/p>\n

More recently, the regulator\u00a0passed a law\u00a0that requires companies holding a BitLicense to pay assessment fees similar to insurance and banking firms.\u00a0<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0 In a Thursday\u00a0announcement, Attorney General Letitia James revealed that it has secured $4.3 million for Coin Cafe users after the company charged \u201cexorbitant and undisclosed fees” for storing crypto on its platform. […]<\/p>\n","protected":false},"author":1,"featured_media":11518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-11517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nNY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld<\/title>\n<meta name=\"description\" content=\"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=11517\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=11517\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-21T00:05:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/jamelitte.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"929\" \/>\n\t<meta property=\"og:image:height\" content=\"523\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=11517#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=11517\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees\",\"datePublished\":\"2023-05-21T00:05:32+00:00\",\"dateModified\":\"2023-05-21T00:05:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=11517\"},\"wordCount\":498,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=11517#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=11517\",\"url\":\"https:\/\/ifintechworld.com\/?p=11517\",\"name\":\"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-21T00:05:32+00:00\",\"dateModified\":\"2023-05-21T00:05:32+00:00\",\"description\":\"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=11517#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=11517\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=11517#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld","description":"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=11517","og_locale":"en_US","og_type":"article","og_title":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld","og_description":"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a","og_url":"https:\/\/ifintechworld.com\/?p=11517","og_site_name":"iFintechWorld","article_published_time":"2023-05-21T00:05:32+00:00","og_image":[{"width":929,"height":523,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/jamelitte.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=11517#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=11517"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees","datePublished":"2023-05-21T00:05:32+00:00","dateModified":"2023-05-21T00:05:32+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=11517"},"wordCount":498,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=11517#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=11517","url":"https:\/\/ifintechworld.com\/?p=11517","name":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-21T00:05:32+00:00","dateModified":"2023-05-21T00:05:32+00:00","description":"The New York Attorney General\u2019s office has ordered crypto trading platform Coin Cafe to repay $4.3 million to users for charging hidden fees.\u00a0In a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=11517#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=11517"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=11517#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"NY Attorney General Secures $4.3 Million Refund for Coin Cafe Customers Misled by Hidden Fees"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/11517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11517"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/11517\/revisions"}],"predecessor-version":[{"id":11519,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/11517\/revisions\/11519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/11518"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}