What's illegal about mining a coin called COYE?  Nothing.  It's illegal to use "K"s image for promotion, but the way the developers have changed everything, I don't see any legal ground for "K" to stand on.  Parody is not against the law, at least not in Canada.  Did "K" sue the makers of South Park over the Gayfish? No, because they couldn't.  If I knew how to run an exchange, I would open one myself and wouldn't worry about any lawsuit.

If I was going to worry about anything now, it would be the creators of South Park taking action against the new devs for "Gayfish" adaptation of the coin.