Letitia James, New York Attorney General, Sends a Strong Warning to Cryptocurrency Players
During a press release on Monday, Letitia said,
“We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down.”
The warning comes just at the start of a year where cryptocurrencies, especially Bitcoin have seen their best days since their invention. Bitcoin, for example, hit its all-time high of $58,330.57 on Feb 21, 2021, which is barely ten days ago.
And following the magical rise of Bitcoin price, the digital asset attracted attention from big corporations like Tesla, which went all in, and even from the Wall Street and the US government.
Some years ago, Bitcoin was mainly viewed as the greatest enemy of the banking system, and governments were too much against it then claiming that it was also an easy payment option for criminals including terrorists. But all that has changed and the digital coin is now a darling to most mainstream investors with more and more corporations showing interest in it. It has even been nicknamed the “digital gold”.
JPMorgan, MasterCard, and Goldman Sachs are just but a few of the corporations that have shown interest in cryptocurrency.
But the cryptocurrency market is still very volatile and it is easily manipulated by ‘whale investors’. In a fraction of a second, the value of a cryptocurrency can climb or fall by hundreds or even thousands.
And in the press release, Letitia James was quick to caution crypto investors saying,
“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.”
She also said that those who participate in the cryptocurrency industry should be registered with the Office of the Attorney General’s investor protection bureau. She also emphasized that parties that fail to register and yet are obliged to do so will face criminal and civil law enforcement.
James lawsuit against Coinseed
Monday’s warning came two weeks after James filed a suit against Coinseed, a crypto trading platform, alleging that it has been operating in New York as an unregistered broker and collecting over $1 million from investors.
According to James,
“We will not hesitate to take action against anyone who violates the law,” 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.”
It is worth noting that Biden’s administration was also very categorical in saying that the cryptocurrency market had to be checked. And this may just be the start.