New York Attorney General Urges Crypto Scam Victims To File Complaint

Crypto Regulation
New York Attorney General Urges Crypto Scam Victims To File Complaint

Letitia James has instituted a new initiative calling on New York residents to report cases of crypto fraud to her office. The jury wants people who have been deceived or defrauded by crypto exchanges to come forward to tender their grievances.

Office of the Attorney General (OAG) Issues Investor Alert

According to the New York Attorney General (NYAG), Letitia James, the crypto market instability calls for urgent action, and the huge losses are a wake-up call for many.

James added that it is appalling for crypto exchanges to promise investors huge returns, only for the investors to lose their funds. Accordingly, James calls on New Yorkers affected by the crypto market crash to report any exchange that “deceived” them.

The OAG has arranged a whistleblower complaint form for residents to come and file if they think they have been scammed.

However, of particular interest to the OAG is compliance from investors who are allegedly locked out of their accounts or are unable to access their investment portfolios.

The attorney general’s office views the Terra Network crash and the subsequent freeze of some crypto-staking platforms like Celsius, Anchor, and Voyager as one of the reasons for issuing the investor alert. 

However, the statement did not mention other companies sanctioned by the regulator. Still, the investor alert is a call to all those affected by any crypto exchange to come forward and file a complaint.

For emphasis, the crypto market meltdown has profoundly impacted both investors and exchanges, prompting regulators to scrutinize the industry again by initiating strict rules.

New York’s Strict Crypto Regulations

Unlike other major American cities with significant crypto activities, New York has had a hard stance regarding regulating the digital asset industry. Moreover, the New York Attorney General’s Office is no stranger to going after perceived offenders in the crypto industry. 

Bitifinex and CoinSeed are two crypto exchanges that have come under the hammer of the office; others who have successfully evaded sanctions are Celsius before the bankruptcy incident and Nexo.

Meanwhile, there have been serious debates about the selective issuance of operating licenses by the New York Department of Financial Services. The exclusive BitLicense is reported to be difficult to get, and the current number of approvals is yet to be ascertained by observers.

However, reports indicate that in 2020, only 25 crypto firms were able to get approval and have a license issued to them by the state regulatory body.

Last month, the state also passed a law against cryptocurrency mining, which prohibits digital asset mining throughout New York. The state has one of the most strict laws regarding the use and transaction of digital currencies in the United States.

Meanwhile, the latest investor report does not specifically state if the state will take further legal actions against the crypto firms found wanting. But what is clear is that if this is to be done, then the office of the AG would put the whistleblower information to use.

Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.