Regulation
New York Attorney General Considers Suing Crypto Companies
New York Attorney General Letitia James has reiterated her strong stance against deceptive practices in the crypto industry.
These actions highlight James’ commitment to combating unregulated crypto activities.
Letitia James maintains her anti-crypto stance
Following a recent milestone $2 billion settlement with crypto lender GenesisJames 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 tackle those who do not,” James said.
Learn more: Crypto regulation: what are the advantages and disadvantages?
Last week’s settlement with Genesis marked a record in New York legal history, the largest ever. In October 2023, the lawsuit stemmed from allegations that Genesis misled investors on the risks linked to its operations. Therefore, Genesis is required to return the fraudulently acquired funds to the affected parties and will cease operations in New York.
Additionally, James’ vigorous approach to crypto regulation is not new. Since being elected New York Attorney General in 2018, she has used her position to launch various crackdowns on crypto companies. She says she wants to ensure that the crypto market follows established financial laws.
In January 2023, James filed a lawsuit against Alex Mashinsky, the former CEO of Celsius, accusing him of defrauding more than 26,000 New Yorkers. Thus, in July 2023, Machinsky was arrested after facing legal action from various US regulators such as the Securities and Exchange Commission (SEC).
In March 2023, James filed a lawsuit against 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.
Learn more: Is KuCoin safe in 2024? Exploring the Legal Status of Crypto Exchange
Additionally, its legal efforts 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 a $18.5 million fine to businesses. This fine highlighted the consequences of failing to comply with regulatory mandates.
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