New York AG Calls for Whistleblowers ‘Deceived or Affected’ by the Crypto Market Crash

New York Attorney General Letitia James is pushing for investors to blow the whistle on crypto companies they consider deceiving or misconducting.

The AG’s intervention comes after a series of debacles that led to people losing their crypto investments. Projects like Terra, Celsius, Voyager, Anchor, and Stablegains have crashed, affecting millions of investors in the process. James believes people have the power to prevent such losses by signaling suspicious activities in crypto projects they support.

In a recent tweet, she said:

The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows, and investors lost hundreds of billions. New Yorkers should be cautious and think twice before putting their hard-earned money into this unstable market.

The Crypto Crash – A Warning for Investors

This is not the first time the New York Attorney General has taken a public stand against crypto entities. In October last year, Letitia James ordered two crypto lending platforms to close their operations within the state. Meanwhile, the crypto market crashed, losing substantial capital and seeing top projects close unexpectedly.

This time, the AG calls for New York-based crypto users who have been “deceived or affected” by their cryptocurrency investments to contact the Office of the Attorney General.

Whistleblowers can file a complaint anonymously against crypto companies that may have wronged them. The AG’s website even allows submitting relevant documents and information through a Tor browser.

Investors were promised large returns on cryptocurrencies but instead lost their hard-earned money,” said James. “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.

The New York AG’s Investor Protection Bureau will process any complaints received.

New York Tightens Grip on Crypto Regulations

It seems that the New York authorities are on a quest to regulate the crypto sector in the state and beyond. In June, the New York State Department of Financial Services (DFS) announced new regulatory guidance for the issuance of US-pegged stablecoins in New York. One of the requirements is that projects cannot issue these assets unless they provide proof of actual reserves backing them up.

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With every passing month, New York crypto users witness a new intervention from the state’s authorities. This time, it was only an investor alert from the AG. However, more and stricter initiatives may follow as the state increases its demand for crypto regulations.

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