[Blockchain Today Reporter Kim So-yeon] New York State Attorney General Letitia James advises cryptocurrency industrymen and investors not to be vigilant about participating in illegal activities or becoming victims.
On the 1st (local time), Secretary James warned investors to “use extreme caution when investing in cryptocurrency,” Cointelegraph reported, citing an official at the New York Attorney General’s Office. The Minister is known to refer to cryptocurrency as “a high-risk, unstable investment that can cause serious losses.”
Secretary James’s message includes warnings to industry investors that “the Attorney General’s Office will take strict response to companies that violate the law.” Last week, the minister said, “It has ended all illegal activities of Bitfinex and Tether in New York,” and agreed to pay the state government $18.5 million in compensation for damages incurred by the companies. As part of the agreement, the Attorney General’s Office asked Bitfinex and Teter to file extensive reports on their finances in New York and to cease customer service.
“In the case of Tether, he falsely expressed that it has a 1:1 ratio of dollar as well as the company’s Stablecoin. Tether supports Tether stablecoin, and Bitfinex has a huge loss. “I made a false statement about the hundreds of millions of dollars in the move between the two companies to cover the truth about this.
“We will not hesitate to take action against anyone who violates the law,” he added. “If the industry as a whole does not follow the rules, we are sending a clear message that we will shut them all down.”
Meanwhile, it seems that Coinseed, a cryptocurrency investment platform, may be the next target of the Attorney General’s Office. The Attorney General’s office filed a lawsuit against the company last month for collecting more than $1 million in investors and selling unlisted tokens more than three years later. Secretary James said, “We aim to stop the illegal operation of Coysid, such as compensation to investors, return of profits, permanent injunction against the company, and complete termination of the Coinseed business.”
Current New York law requires all cryptocurrency brokers, dealers, salespeople and investment advisors to be registered with the Department of Justice’s Investor Protection Department if they do business in the state. Anyone who fails to do so is subject to civil and criminal penalties without exception.
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