Letitia James, the attorney general of New York, has maintained her firm position against misleading crypto practices.
These efforts demonstrate James’ determination to combat the issue of uncontrolled cryptocurrency activity.
James stressed the need for regulatory compliance for all crypto businesses operating in the state after a recent record $2 billion settlement with crypto lender Genesis.
“Crypto firms should adhere to the same regulations as any other company. We will pursue anyone who refuses,” James said.
The biggest ever settlement in New York State’s legal history was last week’s deal with Genesis. The claims that Genesis lied to investors about the dangers of its business activities gave rise to the lawsuit in October 2023. As a result, Genesis must pay back the victims of the scam and will no longer do business in New York.
In addition, James’ forceful approach to cryptocurrency regulation is not novel. Her tenure as attorney general of New York began in 2018, and she has wasted no time using her authority to pursue many lawsuits against cryptocurrency businesses. She says she wants to make sure the cryptocurrency market follows all the rules of traditional finance.
James sued Alex Mashinsky, Celsius’s former CEO, in January 2023, claiming Mashinsky had bilked more than 26,000 people in New York. The Securities and Exchange Commission (SEC) and other US agencies filed accusations against Mashinsky, leading to his arrest in July 2023.
James sued KuCoin, a cryptocurrency exchange, in March 2023. According to her, KuCoin was involved in the illegal buying and selling of commodities and securities as an unlicensed trading platform.
Her legal pursuits also involve a long-running dispute that began in April 2019 with cryptocurrency exchange Bitfinex and cryptocurrency token Tether. In February 2021, the parties involved reached a settlement that fined the corporations $18.5 million. Disregarding regulatory regulations may have serious implications, as this fine demonstrated.
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