The New York Attorney General’s Office (NYAG) warned about the “extreme” risk of investing in digital assets. The agency also reminded participants in the cryptocurrency industry of accountability.
“I warn New Yorkers and investors across the country that investments in this volatile market are imprudent and could lead to enormous losses,” said Attorney General Letitia James.
Let this also serve as a warning to those facilitating these trades:
If you don’t play by the rules, we will not hesitate to shut down your operations.
— NY AG James (@NewYorkStateAG) March 1, 2021
James pledged to “shut down” crypto companies that “operate outside the rules.” She reminded that they are required to register in the state.
Earlier, the NYAG announced a settlement of the dispute with cryptocurrency exchange Bitfinex and Tether. The office accused Bitfinex of attempting to hide a loss of $850 million through the reserves of Tether. The companies did not admit guilt, but agreed to pay the state $18.5 million.
Earlier in February 2021, the New York Attorney General accused the cryptocurrency startup Coinseed and two of its top executives of deceiving investors in excess of $1 million.
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