New York Attorney General Vows to Go After Crypto Companies

New York Attorney General Letitia James has reiterated her firm stance against deceptive practices within the crypto sector.

These actions highlight James’ commitment to fighting against unregulated crypto activities.

Letitia James Maintains Her Anti-Crypto Stance

Following a recent landmark $2 billion settlement with crypto lender Genesis, James emphasized the importance of regulatory compliance for all crypto entities operating in the state.

“Crypto companies must play by the same rules as everyone else. We will go after those that don’t,” James said.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Last week’s settlement with Genesis marked a record in New York’s legal history—the largest ever. In October 2023, the legal action stemmed from allegations that Genesis misled investors about the risks involved in its operations. Consequently, Genesis is required to return the fraudulently acquired funds to the affected parties and will cease its operations within New York.

Moreover, James’ vigorous approach to crypto regulation is not new. Since being elected New York’s Attorney General in 2018, she has used her position to launch various crackdowns against crypto companies. She claims she wants to ensure the crypto market adheres to established financial laws.

In January 2023, James took legal action against Alex Mashinsky, the former CEO of Celsius, accusing him of defrauding over 26,000 New Yorkers. Consequently, in July 2023, Mashinsky was arrested after facing legal charges from various US regulators such as the Securities and Exchange Commission (SEC).

In March 2023, James filed a lawsuit against the crypto exchange KuCoin. She alleged that KuCoin operated as an unregistered securities trading platform, engaging in the unauthorized sale and purchase of securities and commodities.

Read more: Is KuCoin Safe in 2024? Exploring the Crypto Exchange’s Legal Status

Additionally, her legal endeavors include a protracted battle with Tether and crypto exchange Bitfinex, initiated in April 2019. This confrontation culminated in February 2021 with a settlement that imposed an $18.5 million fine on the companies. This fine underscored the consequences of disregarding regulatory mandates.