Regulation
New York’s attorney general says he will “prosecute” crypto firms that don’t play by the rules
New York Attorney General (NYAG) Letitia James has issued a warning to crypto companies, saying she will prosecute those who act in violation of the law.
In a post on social media platform X, James He says his gaze is on the digital asset companies that got it wrong.
“Cryptocurrency companies have to play by the same rules as everyone else. We will hunt down those who don’t.
The warning comes just over a week after NYAG reached the $2 billion mark settlement with the struggling crypto firm Genesis. In addition to the financial penalty, the settlement banned Genesis from operating in New York.
“The settlement, which required review and approval by a bankruptcy court due to Genesis’ previous bankruptcy filing, will establish a victims’ fund to help defrauded investors, including at least 29,000 New Yorkers, who have contributed more than $1.1 billion to Genesis through the Gemini Earn investment program.”
Genesis customer funds have been blocked since November 2022, when the now-bankrupt cryptocurrency lender halted withdrawals due to liquidity problems caused by the collapse of cryptocurrency hedge fund Three Arrows Capital.
In October 2023, James sued Genesis, its former CEO Soichiro Moro and its parent company, Digital Currency Group (DCG), accused the companies of trying to hide $1.1 billion in losses.
Reports that the NYAG was probe Digital Currency Group for its ties to troubled cryptocurrency lender Genesis first surfaced around August.
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