May 28, 2024


The New York Attorney General has issued an investor alert, urging any New Yorkers affected by the cryptocurrency crash to contact his office.

Attorney General Letitia James recounted how many cryptocurrency businesses have struggled or collapsed amid the current credit crunch, alarm posted on her office’s website.

These conditions have forced crypto platforms to freeze customer withdrawals, announce mass layoffs or file for bankruptcy, which James said has left many investors in financial ruin.

The notice highlighted the collapse of the virtual coins Terra and Luna and the account freezing of cryptocurrency staking or winning programs such as Anchor, Celsius, Voyager and Stablegains.

Consequently, the Office of the Attorney General (OAG) is pursuing New York investors who were locked out of their accounts, unable to access their investments, or defrauded about their crypto investments.

New York AG seeks whistleblowers

The notice also asked any employee in the cryptocurrency industry who may have witnessed misconduct or fraud to come forward and file a whistleblower complaint. It was emphasized that this could be done anonymously.

“The recent turmoil and significant losses in the cryptocurrency market are troubling,” said Attorney General James. “I urge any New Yorker who believes they have been defrauded by crypto platforms to contact my office, and I encourage employees at crypto companies who may have witnessed misconduct to file a whistleblower report.”

Attorney General Is Skeptical About Cryptocurrencies

Attorney General James has stood out as a prominent cryptocurrency skeptic during her tenure. Last year, Tether reached an $18.5 million settlement with its office, which also stipulated that it cease all further commercial activity in the state.

Later that year, James ordered two cryptocurrency exchanges to cease operations in New York. In addition to closing these exchanges, James directed three other platforms to immediately provide information about their activities and products.

While James did not name the companies in her statement, Bloomberg reported that Nexo Financial had received a cease and desist letter, while Celsius Network LLC received a request for more information.

Denial of responsibility

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