Attorney General of New York Warns Crypto Investors

On June 2, Attorney General Letitia James issued a “alert” warning New Yorkers of the risks associated with investing in cryptocurrencies.

The message arrives as cryptocurrency markets continue to reel from the aftermath of Terra’s implosion. In May, the total crypto market capitalization decreased by $446 billion, marking the sector’s eleven-month low.

James issued a fresh warning to investors, asserting that digital assets are among the riskiest investments available.

Cryptocurrencies are susceptible to extreme and unpredictable price fluctuations, making them among the riskiest investments available.

The last time Attorney General James issued a similar warning was in March 2021, as Bitcoin rallied to new all-time highs and sentiment spiked. However, the message then had a greater emphasis on the industry.

She informed the members of the New York crypto industry that they would be shut down if they did not comply with the rules.

We are sending a clear message to the entire industry that if you do not comply with the rules, we will close you down.

James specifically mentioned state regulatory requirements to register with the Investor Protection Bureau of the Office of the Attorney General. She stated that non-compliant parties would be subject to civil and criminal enforcement.

Her message was unambiguous: the New York Attorney General’s Office is cracking down on crypto firms that take unnecessary risks with investor funds.

We are sending a clear message to the entire industry that if you do not comply with the rules, we will close you down.

James specifically mentioned state regulatory requirements to register with the Investor Protection Bureau of the Office of the Attorney General. She stated that non-compliant parties would be subject to civil and criminal enforcement.

Her message was unambiguous: the New York Attorney General’s Office is cracking down on “greedy crypto firms” that take unnecessary risks with investor funds.

Today, we are leveling the playing field by issuing alerts to both investors and industry members nationwide.

Now, however, James cautions retail investors against investing in cryptocurrencies, stating that doing so can result in more anxiety than wealth.

Too often, cryptocurrency investments cause investors more pain than gain. I urge New Yorkers to exercise caution before investing their hard-earned money in speculative cryptocurrencies, which can produce more anxiety than wealth.
In the press release, James listed seven specific considerations for investing in digital assets.

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