New York Attorney General Letitia James has urged crypto investors “extreme caution when investing in virtual currencies.” The attorney general added, “we’re sending a clear message to the entire industry that you either play by the rules or we will shut you down.” The alert to crypto industry members serves as a reminder to brokers, dealers, salespersons, and investment advisors that the State of New York will not tolerate unregistered cryptocurrency operations.
The Attorney General issues an alert to both investors and industry members.
Attorney General Letitia James said: “Too often, greedy industry players take unnecessary risks with investors’ money, but, today, we’re leveling the playing field and issuing alerts to both investors and industry members across the nation. All investors should proceed with extreme caution when investing in virtual currencies. Cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains.” “We will not hesitate to take action against anyone who violates the law. Two weeks ago, we filed a lawsuit to shut down Coinseed’s fraudulent operation,” she added.
“We ended both Bitfinex and Tether’s illegal activities in New York.”
The Attorney General further noted, “Last week, we ended both Bitfinex and Tether’s illegal activities in New York. And now, today, we’re sending a clear message to the entire industry that you either play by the rules or we will shut you down.” The regulator has recently banned Bitfinex and Tether from operating in New York. The ruling followed a thorough investigation of 2.5 million documents that concluded that Tether falsely represented that each of its stablecoins was fully backed, one-to-one, by U.S. dollars in reserve at all times.