NY’s Attorney General Warns the Crypto Industry Against Illicit Activities

Letitia James, Newyork’s Attorney General, has sent a clear message to the entire crypto industry regarding illicit activities. 

The Attorney General is asking the members of the crypto industry to be cautious of becoming a victim or being involved in illegal activities. This alert has been issued by James to the crypto investors advising them to take extreme caution when they invest in the virtual asset. She also highlighted cryptocurrency as a high-risk, unstable investment that could end in a huge loss.

The message by the Attorney general includes a warning to the industry members that they will face major consequences by the US Attorney General’s office if they are found playing around with the serious laws. She also highlighted that her office has already successfully taken down two of the cryptocurrency industry players, Tether and Bifinex, for their illegal activities. Both companies have been fined $18.5 million. 

James said, “In the case of Tether, the company falsely represented that each of its Stablecoins was fully backed, one-to-one, by U.S. dollars in reserve at all times. Tether made false statements about the backing of the ‘tether’ Stablecoin, and about the movement of hundreds of millions of dollars between the two companies to cover up the truth about massive losses by Bitfinex.”

The attorney general added: “We will not hesitate to take action against anyone who violates the law. […] We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down.”

The new law in Newyork requires all crypto brokers, dealers, investors, salespersons, etc. to register with the Attorney General’s Investor Protection Bureau if they plan to do any business in the state. Those who fail to comply will have to face civil and criminal penalties.