New York Attorney General Letitia James has issued a stern warning to the cryptocurrency industry, emphasizing the importance of adhering to regulatory standards. In a recent announcement on May 25, James stated, “We will go after those that don’t.”

A History of Enforcement

Since taking office in 2018, James has been known for her rigorous enforcement actions against crypto firms. Notably, in 2019, she initiated a legal battle with USDT stablecoin issuer Tether and the Bitfinex crypto exchange, which resulted in an $18.5 million fine. Additionally, her actions against companies like KuCoin and Coinseed have further solidified her stance, with KuCoin agreeing to a $22 million settlement in December 2023.

James’ office has established itself as a significant regulatory force, ensuring that crypto entities operate within the legal framework. Her commitment to enforcing regulations was underscored by a substantial $2 billion settlement with troubled crypto lender Genesis Global. The firm, which declared Chapter 11 bankruptcy in January 2023, has been ordered to return approximately $3 billion in cash and cryptocurrency to its customers as part of a court-approved liquidation. This settlement is the largest ever reached between the state of New York and a crypto company.

Regulatory Shortcomings

Following the settlement, James voiced her concerns about the cryptocurrency industry’s regulatory shortcomings, noting the detrimental losses that can result from a lack of oversight. A significant portion of the settlement includes the creation of a victims fund aimed at assisting defrauded investors, including 29,000 New Yorkers who had invested over $1.1 billion in Genesis through the Gemini Earn scheme.

James pursued Genesis in October 2023, alleging that the company had concealed significant losses from its investors. However, Genesis has neither admitted to nor denied these allegations under the settlement terms. The agreement also stipulated that Genesis, Gemini, and the Digital Currency Group would cease operations in New York.

High-Profile Cases

In recent years, one of James’ most notable cases involved former President Donald Trump. In March, James won a civil fraud lawsuit against Trump, his adult sons, and The Trump Organization. Trump was ordered to pay $454 million, including $355 million in penalties and nearly $100 million in interest.

“Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry,”

Stay updated with the latest news and developments in the cryptocurrency space by exploring more articles on Global Crypto News.

Post Views: 3