Coin Cafe Fined $4.3MN Over Hidden Wallet Fees
The renowned cryptocurrency network based in New York is allegedly charging its users exorbitant fees to utilise the platform. As a result, it has been sentenced to pay $4.3 million in punishment and fines.
According to Letitia James, the New York State Attorney General, “the company was charging investors exorbitant and undisclosed fees to use its wallet storage, despite marketing its wallet storage as ‘free’ on its website.”
Furthermore, the exchange has been accused of failing to disclose the cost structure and draining all customer funds.
The problem was discovered after several customers expressed worry about the depletion of funds in their Coin Cafe accounts. Following these charges, an investigation into the firm’s business practises and fee transparency was launched.
According to the study, the company originally onboarded clients by pitching its crypto wallet as a free offering.
(With inputs from Shikha Singh)
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