- The Attorney General for the State of New York has issued an investor alert.
- New Yorkers who have been affected by crypto frauds are strongly encouraged to report
- The cryptocurrency industry has been rife with scams and fraudulent behavior.
Letitia James, the Attorney General for the State of New York, has issued an investor alert warning anyone harmed or misled by the cryptocurrency crash to contact her office. Investors have been left in financial ruin as many high-profile cryptocurrency companies have halted customer withdrawals, implemented massive layoffs, or sought bankruptcy.
Office of the Attorney General (OAG) is looking for New York investors who have been locked out of their accounts, who are unable to access their investments, or who have been misled about their bitcoin investments as part of its ongoing investigations. 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.
“My office will get to the bottom of these harmful practices and ensure that investors are protected,” said Attorney General James. “I urge any New Yorker who believes they have been misled about investing in cryptocurrencies to contact my office immediately.”
The cryptocurrency industry has been rife with scams and fraudulent behavior. In 2018, the US Securities and Exchange Commission (SEC) charged two brothers behind the cryptocurrency company Centra Tech with running a $25 million initial coin offering (ICO) fraud.
Last year, James shut down an ICO scam that had raised $30 million from investors. The defendants, in that case, were accused of falsely promising investors that their ICO would be the next big thing and that they would make “millions of dollars.”
