New York Attorney General Directs Two Crypto Lending Platforms to Cease Activities

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New York Attorney General Letitia James ordered two crypto lending platforms to cease their activities, which were determined to be unregistered and unlawful.

  • The platforms are in violation of offering securities and/or commodities without having registered with the Office of the Attorney General (OAG), according to a statement that didn’t identify the companies.
  • Three further platforms were asked to provide information about their activities and products. That includes data related to loan-to-value ratios, collateral options and payout processes, the minimum and maximum amount that can be borrowed, the lending rate and all fees payable.
  • The actions have been taken by the OAG in accordance with New York’s Martin Act, an anti-fraud law that gives the Attorney General authority to investigate any company deemed to be trading securities in the state. For the purposes of the Martin Act, cryptocurrency is classed as a security, and therefore subject to its provisions, according to the statement.
  • Crypto platforms offering investors in New York a rate of return on the assets deposited with them must, therefore, register with the OAG.

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