A report coming from the New York Attorney General's office, Letitia James, states that; they have issued an order to two unnamed crypto companies operating in the state to shut down their operations. This is coming after they have been found engaging in some unlawful activities.
Nonetheless, three other companies have been issued a warning and asked to provide more information on their businesses.
The New York attorney general announced on Monday that it had ordered two cryptocurrency lending platforms - their names were still edited at the time of publication - to cease “all such activities” in connection with the sale or offer of securities and merchandise within ten days . . Attorney General Letitia James also requested that three New York crypto firms - names blacked out - provide details of their loan products, policies, procedures, customers in the state, and other relevant information.
The action was taken by the Attorney General (OAG) under the New York Martin Act, an anti-fraud act that gives the Attorney General the power to investigate any company believed to be marketing securities in the state.
According to an OAG press release, James said, “Virtual currency or 'crypto' lending platforms are essentially interest-bearing accounts that offer investors a return on the virtual currencies they hold. In New York, these loan platforms must register with the Attorney General's Office (OAG) if they operate in the state or offer their products to New Yorkers. Today, Attorney General James ordered two of these lending platforms to immediately cease their unregistered and illegal activities
“Like everyone else, cryptocurrency platforms must obey the law, which is why we are now ordering two crypto companies to shut down and forcing three others to answer questions immediately. My office is responsible for ensuring that industry players don't take advantage of unsuspecting investors. Actions have been taken against a lot of cryptocurrency platforms that are either fraudulent or operating illegally in New york. Today's actions build on that work and send the message that we will not hesitate to take all necessary action against any company that believes it is above the law. " she said.
The three companies' requests for information were not legally binding, but the NYAG office left the door open for a subpoena in the letter. The order to close the business is supported by the state Martin Act, which grants the GA the authority to enforce civil or criminal proceedings against unregistered crypto companies. This is not the first of its kind.
In February, the attorney general announced a deal with Bitfinex, Tether, and affiliates that will end all of their business activities in New York state and fined companies $ 18.5 million.
In September, the New York Attorney General ordered the shutdown of the Coinseed crypto investment platform after allegedly scamming investors over $ 1 million and selling an unlisted coin.
The crypto platform was permanently ordered to stop operations and asked to pay a fine of $3 million.
Under current New York State law, all crypto brokers, dealers, sellers, and investment advisers must register with the NYAG Investor Protection Office when doing business in the state.
Nonetheless, three other companies have been issued a warning and asked to provide more information on their businesses.
The New York attorney general announced on Monday that it had ordered two cryptocurrency lending platforms - their names were still edited at the time of publication - to cease “all such activities” in connection with the sale or offer of securities and merchandise within ten days . . Attorney General Letitia James also requested that three New York crypto firms - names blacked out - provide details of their loan products, policies, procedures, customers in the state, and other relevant information.
The action was taken by the Attorney General (OAG) under the New York Martin Act, an anti-fraud act that gives the Attorney General the power to investigate any company believed to be marketing securities in the state.
According to an OAG press release, James said, “Virtual currency or 'crypto' lending platforms are essentially interest-bearing accounts that offer investors a return on the virtual currencies they hold. In New York, these loan platforms must register with the Attorney General's Office (OAG) if they operate in the state or offer their products to New Yorkers. Today, Attorney General James ordered two of these lending platforms to immediately cease their unregistered and illegal activities
“Like everyone else, cryptocurrency platforms must obey the law, which is why we are now ordering two crypto companies to shut down and forcing three others to answer questions immediately. My office is responsible for ensuring that industry players don't take advantage of unsuspecting investors. Actions have been taken against a lot of cryptocurrency platforms that are either fraudulent or operating illegally in New york. Today's actions build on that work and send the message that we will not hesitate to take all necessary action against any company that believes it is above the law. " she said.
The three companies' requests for information were not legally binding, but the NYAG office left the door open for a subpoena in the letter. The order to close the business is supported by the state Martin Act, which grants the GA the authority to enforce civil or criminal proceedings against unregistered crypto companies. This is not the first of its kind.
In February, the attorney general announced a deal with Bitfinex, Tether, and affiliates that will end all of their business activities in New York state and fined companies $ 18.5 million.
In September, the New York Attorney General ordered the shutdown of the Coinseed crypto investment platform after allegedly scamming investors over $ 1 million and selling an unlisted coin.
The crypto platform was permanently ordered to stop operations and asked to pay a fine of $3 million.
Under current New York State law, all crypto brokers, dealers, sellers, and investment advisers must register with the NYAG Investor Protection Office when doing business in the state.
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