Regulatory pressure on cryptocurrencies and exchanges continues.
In a press release recently issued by the New York Attorney General’s Office, it was stated that an order was sent to cease operations of unregistered lending platforms in New York, and additional investigations were conducted.
The following statements were used in the statement:
“New York Attorney General Letitia James announced today her new efforts to protect New York investors and more generally the trading markets from the exploitation of high-risk virtual currency programs.
Virtual or “crypto” currency lending platforms are interest-bearing accounts that offer investors a rate of return on the virtual currencies deposited with them.
In New York, these loan platforms must register with the Office of the Attorney General (OAG) if they operate within 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 in New York, and three other platforms to take immediate action and provide information on their products.”
The statement also included the statements of Attorney General James:
“Cryptocurrency platforms must comply with the law just like everyone else, so we are now forcing two crypto companies to shut down and three more to answer questions immediately.
We have already taken action against a number of crypto platforms and coins that are fraudulent or operating illegally in New York. Today’s actions build on that work and send the message that we will not hesitate to do whatever is necessary against any company that thinks it is above the law.”
It was seen that the platforms where the Attorney General’s office sent a closure order were Celsius and Nexo. Although the Chief Public Prosecutor’s Office updated its statement and removed the names, the names of the platforms were included in the titles of the letters.
