CoinZoom Ordered To “Suspend” Operations in Ohio
Article Presented By Litter Quality Propane…
(Columbus) – The Ohio Department of Commerce Division of Financial Institutions has issued an order for CoinZoom, Inc., a cryptocurrency exchange, to immediately suspend operations in Ohio. As a result of this order, CoinZoom may no longer accept new business or assets from Ohio residents; however, Ohio residents that are current customers are able to withdraw fiat currency or cryptocurrency assets from their accounts.
CoinZoom, which offers a range of financial products and over 30 available cryptocurrencies, is licensed as a money transmitter in Ohio.
The order follows a multi-state bank examination that Ohio regulators participated in, during which examiners were unable to determine the company’s financial condition due to incomplete or inaccurate financial records. The Division concluded that the company’s financial records were insufficient to meet the certification requirements for licensees, making it impossible for DFI to ascertain the company’s financial health.
During the examination, CoinZoom failed to provide foundational financial documents, such as general ledgers or trial balances, which are essential to verifying an organization’s financial status. Examiners also noted omissions and inaccuracies in the financial documents that were provided to them. In addition, representatives of CoinZoom were unable to answer basic questions regarding the financial records or processes during meetings with examiners to discuss these concerns.
“These examinations are critically important for ensuring the financial safety of Ohioans,” said DFI Superintendent Kevin Allard. “While it is generally uncommon to take such action, this order was necessary to protect Ohioans and their assets, particularly those who have done business with CoinZoom.”
The suspension of CoinZoom’s operations in Ohio will remain in effect until the order is lifted or modified by either DFI or a reviewing court. CoinZoom has the opportunity for and has requested an administrative hearing with regard to the order. A hearing date has not yet been scheduled.
