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New York Attorney General Letitia James urged A victim of the recent crypto market crash contacted her office.
Investor Alert asked anyone who believes they have been cheated or locked out of their accounts by various cryptocurrency projects affected by the recent market crash to contact the NYAG Office of Investor Protection.
James also urged crypto industry workers who may have witnessed fraud or misconduct to file whistleblower reports with her office. Individuals may submit whistleblower reports anonymously.
James said:
The recent turmoil and heavy losses in the cryptocurrency market are alarming. Investors were promised huge profits in cryptocurrencies, but instead lost their hard-earned money.
The press release heavily impacts New Yorkers, citing the collapse of the Terra/LUNA ecosystem and the freezing of accounts in cryptocurrency staking or earning programs such as Anchor, Celsius, Voyager and Stablegains.
Meanwhile, those who know someone affected by the collapse can contact the Attorney General’s Office.
New York has made several attempts to regulate the crypto industry. In October 2021, the Attorney General’s Office ordered all unregistered cryptocurrency lending platforms to cease operations.
The Attorney General earlier this year issued a taxpayer notice directing investors in digital assets to file and pay taxes on their assets. The office reached a nearly $1 million settlement with BlockFi for offering unregistered securities in June.
New York has expressed interest in investigating cryptocurrency lenders such as Celsius, while several U.S. states, including Vermont, Alabama and Texas, have launched investigations into how these companies operate.
Vermont’s Department of Financial Regulatory Affairs (DFR) has declared Celsius to have mismanaged user funds and is in serious bankruptcy.
Regulators in Alabama and Texas were also investigating whether the company’s offering qualifies as a security and whether it meets disclosure requirements.
