New York AG’s Office After the Crypto Institutions

  • New York wants those deceived and who lost their money to crypto institutions to come forward
  • The office of the Attorney General also called on the employee of such institutions to come forward and report any fraud cases.

The state of New York has recently made more and more attempts into the crypto industry. On the first day of this month, the Attorney General’s office issued a letter to the public urging them to reach out if they have been deceived. This is in an attempt, by the state, to regulate crypto despite it being a decentralized entity.

In the letter, the attorney general is persuading crypto investors who have been deceived to come forward and help them take action against the institutions. This comes after what is considered one of the worst meltdowns in the crypto market. Luna, for example, went down with over $40 billion of investors’ money. In the letter the NY Attorney General, Letitia James sentiments were:

…The recent turbulence and significant losses in the cryptocurrency market are concerning. Investors were promised large returns on cryptocurrencies but instead lost their hard-earned money…

The idea is to get to those who have lost their wealth in the process looking to get justice. Letitia continued to say:

I urge any New Yorker who believes they were deceived by crypto platforms to contact my office, and I encourage workers in crypto companies who may have witnessed misconduct to file a whistleblower complaint.

The letter also urged the employees of such institutions who felt that the company they work for is involved in fraud to come forward. Any information brought forward to them will be anonymous to protect them.

Read more on the letter here

New York Past Regulatory attempts

This is not the first time the office of the Attorney General has made an attempt ti regulate crypto. Earlier this year, New York through the senate banned any mining activities within the state. This automatically cancels any licenses to mine issued in the past by the state

In 2020, the state also introduced a special license to regulate crypto firms operating within the state. By then only 45 institutions had the license to run their companies in New York. These are just a few of the recent attempts to regulate the crypto industry.

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