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Home»Regulation»New York’s attorney general says she will go after crypto companies that don’t follow the rules
New York's attorney general says she will go after crypto companies that don't follow the rules
Regulation

New York’s attorney general says she will go after crypto companies that don’t follow the rules

2024-05-28No Comments2 Mins Read
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New York Attorney General (NYAG) Letitia James is warning crypto companies and saying she will prosecute those who violate the law.

In a post on social media platform X, James said her sights are set on errant digital asset companies.

“Crypto companies must adhere to the same rules as everyone else. We go after those who don’t.”

The warning comes just over a week after the NYAG reached a $2 billion settlement with controversial crypto company Genesis. In addition to the financial penalty, the settlement prohibited Genesis from operating in New York.

“The settlement, which required review and approval by a bankruptcy court due to Genesis’ previous bankruptcy declaration, will create a victims fund to help defrauded investors, including at least 29,000 New Yorkers, who lost more than $1.1 billion through the Gemini Earn contributed to Genesis. investment programme.”

Genesis customers’ funds have been frozen since November 2022, when the now-bankrupt cryptocurrency lender halted withdrawals due to liquidity issues caused by the collapse of crypto hedge fund Three Arrows Capital.

In October 2023, James Genesis, former CEO Soichiro Moro and its parent company sued Digital Currency Group (DCG) over allegations that the companies tried to hide $1.1 billion in losses.

Reports that the NYAG was investigating Digital Currency Group over its ties to troubled cryptocurrency lender Genesis first emerged around August.

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