New York Attorney General says cryptocurrencies are 'high-risk' and 'unstable', and urges caution when trading
New York Attorney General says cryptocurrencies are ‘high-risk’ and ‘unstable’, and urges caution when trading
NY attorney general Letitia James called cryptocurrencies “high-risk” and” unstable” investments. She urged investors to exercise “extreme caution” when trading the digital assets. James also warned brokers, dealers, and advisors, of the possibility of facing ” both civil and criminal liability ” for unauthorized businesses. Sign up here for our daily newsletter, 10 Things Before the Opening Bell New York Attorney General Letitia James on Monday called cryptocurrencies “high-risk” and” unstable” investments in a rebuke of the rapidly evolving market, urging investors to exercise “extreme caution” when trading digital assets. The state’s top law enforcement official further warned investors of “speculative bubbles”.
“Too often, greedy industry players take unnecessary risks with investors’ money,” James said in an investors’ alert . “All investors should proceed with extreme caution when investing in virtual currencies. Cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains.”
James also reminded brokers, dealers, and advisors, among others, of the possibility of facing ” both civil and criminal liability ” for unauthorized and unregistered business transactions.
“Many operators of virtual currency trading platforms are themselves heavily invested in virtual currencies, and trade on their own platforms without oversight,” she said.
The statement is the latest action James, a Democrat, has taken with regard to policing the industry.
On February 17, James announced a lawsuit against cryptocurrency trading platform Coinseed for defrauding investors out of more than $1 million via undisclosed fees and through the sale of what she called “worthless” tokens. A week after that, the office of the Attorney General halted the illegal activities of both Bitfinex and Tether in New York.
“Today, we’re sending a clear message to the entire industry that you either play by the rules or we will shut you down,” she said. ” We will not hesitate to take action against anyone who violates the law.”
The statement was also accompanied by five warning signs of investment fraud as well as a link to a complaint form .