New York attorney general warns the crypto industry

New York Attorney General

Behave! New York Attorney General Letitia James has fired off a blistering warning to all the players in the cryptocurrency space. And the words to industry members are crystal clear.

Play by the rules, or risk a shut down!

As noted, James addressed individual investors and crypto industry members, making them aware that they must be registered with the Office of the Attorney General’s investor protection bureau. Parties that are obligated but fail to register are subject to civil and criminal enforcement.

The press release said:

“We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down.”

She further stressed that cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains. The AG said that investors should be cautioned about investing in virtual currencies, and proceed with extreme caution.

“We will not hesitate to take action against anyone who violates the law. 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.”

This alert comes two weeks after the attorney general filed a lawsuit against Coinseed, a trading platform for digital currency, alleging that the company was operating a virtual currency business in New York, functioning as an unregistered broker-dealer for more than three years.

During this time, Coinseed had collected over $1 million in investors assets.

It also comes days after BitFinex settled with NY for $18.5 million over Tether fraud.

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