New York Attorney General Letitia James today issued an investor alert urging any New Yorker deceived or affected by the cryptocurrency crash to contact her office. Many high-profile cryptocurrency businesses have frozen customer withdrawals, announced mass layoffs, or filed for bankruptcy, while investors have been left in financial ruin. As part of the Office of the Attorney General’s (OAG) ongoing investigative work, OAG is interested in hearing from New York investors who have been locked out of their accounts, who are unable to access their investments, or who have been deceived about their cryptocurrency investments. New Yorkers who have been affected by this conduct are strongly encouraged to report these issues to OAG. Attorney General James also encourages workers in the cryptocurrency industry who may have witnessed misconduct or fraud to file a whistleblower complaint with her office, which can be done anonymously.
“The recent turbulence and significant losses in the cryptocurrency market are concerning,” said Attorney General James. “Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money. I urge any New Yorker who believes they were deceived by crypto platforms to contact my office, and I encourage workers in crypto companies who may have witnessed misconduct to file a whistleblower complaint.”
In the last few months, investors have lost hundreds of billions of dollars in cryptocurrency markets. New Yorkers who have been affected by the dramatic devaluations of the Terra and Luna virtual currencies and the account freezes on cryptocurrency staking or earning programs, such as Anchor, Celsius, Voyager, and Stablegains, are strongly encouraged to contact OAG’s Investor Protection Bureau. In addition, any New Yorker who believes they are a victim of fraudulent or deceptive conduct should also share their experiences with OAG.
If you are worried that you or someone you know has been a victim of investment fraud, contact OAG’s Investor Protection Bureau online or email [email protected]. If you have worked in the crypto industry and believe you may have knowledge of wrongdoing, contact OAG’s Investor Protection Bureau, email [email protected], or file a complaint using the online whistleblower portal.
Today’s investor alert continues Attorney General James’ efforts to regulate the cryptocurrency industry and protect New York investors. In June, Attorney General James warned New Yorkers of the dangerous risks of investing in cryptocurrencies after the market reached record lows. Also in June, Attorney General James reached a nearly $1 million settlement with crypto platform BlockFi Lending LLC for offering unregistered securities. Earlier this year, Attorney General James issued a taxpayer notice to virtual currency investors and their tax advisors to accurately declare and pay taxes on their virtual investments. In October 2021, Attorney General James directed unregistered crypto lending platforms to cease operations for not fulfilling their legal obligations. In March 2021, Attorney General James warned New Yorkers of the risks of cryptocurrency investments and reminded investment platforms of their legal obligations.