The New York Attorney General’s Office announced today that it will conduct “additional investigations” into unregistered cryptocurrency lending and borrowing platforms. These platforms, also known as “lending platforms” in the crypto money world, seem to face new problems.
New York Attorney General Letitia James ordered two “unregistered crypto lending platforms” operating in the state of New York today to cease all operations, while demanding that the other three serving platforms inform her office about their operations.
“Cryptocurrency platforms must comply with the law just like everyone else, so we have decided to shut down these two cryptocurrency lenders,” James said in a press release. We immediately invite the other three exchanges to our office to answer our questions.” he said.
Although the names of the closed exchanges were not given in the first statement, they were included in the article announced later. It has been announced that the companies “Nexo Letter” and “Celsius Letter” will no longer provide services. The other three companies invited remain unclear.
“The virtual currency lending platforms at stake in today’s actions promise investors a fixed or variable rate of return and claim that they generate these returns, among other things, by trading these virtual assets or lending them further,” the prosecution explained.
According to the prosecution, these platforms offer “interest bearing accounts” and therefore fall under the category of securities under the New York Martin Act. The Prosecutor’s Office stated that these platforms started operations without registering with the Chief Prosecutor’s Office.