The Supreme Court of the State of New York (the "Court") issued a "Default Judgment for Permanent Injunction" against a digital asset trading company for trading cryptocurrencies without registering as a broker-dealer, and for failing to disclose to investors certain fees associated with the cryptocurrency trading.

The New York Attorney General's Office ("NYAG") filed the complaint against the company and its CEO in February seeking (i) a permanent injunction against the company, its CEO and its Chief Financial Officer ("CFO"), and (ii) the appointment of a receiver to wind down the company's operations, return investors' assets and funds raised during the offering, and supervise the recall and destruction of all of the company's virtual currencies. In May, the NYAG filed a motion for a temporary restraining order to force the company to immediately cease its "continued illegal and fraudulent operations," which was granted in June.

The Court ordered the "Default Judgment for Permanent Injunction and Monetary Judgment" and appointed a receiver to liquidate all profits and assets derived from the operation and return the proceeds to impacted investors. The Court ordered the company, its CEO and its CFO to pay $3,061,511 to the State of New York.