Brooklyn cryptocurrency platform Coin Cafe to pay $4.3M to settle lawsuit
Attorney General Letitia James continues her crusade against crypto companies
Brooklyn-based cryptocurrency company, Coin Cafe, is set to pay $4.3 million in restitution to investors following a deceptive fee scheme revealed by the Office of the Attorney General (OAG). Attorney General Letitia James announced the settlement today, affirming her ongoing commitment to bolster the regulation of the cryptocurrency industry.
Coin Cafe, a cryptocurrency trading platform, permitted investors to store Bitcoin in their Coin Cafe accounts, often referred to as ‘wallet storage.’ However, despite marketing their wallet storage as “free,” the company imposed undisclosed and excessive fees that, in numerous cases, entirely depleted investors’ accounts.
Among those affected, one New Yorker was charged over $10,000 within a month, while another investor incurred fees exceeding $51,000 over 13 months.