Brooklyn-based crypto platform Coin Cafe has been mandated to refund $4.3 million to its users over undisclosed and exorbitant fees for Bitcoin storage. 💰
Despite an eight-year process to acquire a virtual currency license from the New York State Department of Financial Services, the platform failed to register with the New York Attorney General’s Office, as necessitated for all broker-dealers in the state.
The company reportedly raised Bitcoin storage fees without adequate notice to investors, even wiping out some accounts.. 🤬
The most significant change was introduced in October 2022, charging investors an inactivity fee of either 7.99% of the account or $99 worth of Bitcoin monthly.
As part of a settlement, Coin Cafe is now obligated to refund all fees to U.S.-based investors who request a refund within the next year and to inform all U.S.-based customers about their eligibility for a refund via email by May 23. 🗓️