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NY AG Issues Warning for Crypto Companies

source-logo  u.today 26 May 2024 10:48, UTC

New York Attorney General Letitia James has warned the cryptocurrency industry that she will go after those companies that refuse to play by the same rules as everyone else.

Earlier this week, James announced a $2 billion settlement with embattled cryptocurrency lender Genesis. She decried the lack of oversight that had led to massive losses for victims.

Gemini, Genesis and the Digital Currency Group were sued by the NYAG back in October 2023 over the controversial Gemini Earn cryptocurrency investment program. The fraud loss claim against Barry Silvert's crypto giant was then tripled in February in an amended complaint.

As part of the settlement, Genesis has been prohibited from operating in New York.

In 2018, James was elected as the state's attorney general with overwhelming support, breaking gender and racial barriers.

Since her historic election, James has cracked down on various cryptocurrency companies.

In April 2019, New York's top law enforcement official kicked off a long-running legal battle with stablecoin issuer Tether and cryptocurrency exchange Bitfinex. In February 2021, it eventually reached an agreement with James with a $18.5 million fine.

Since then, the NYAG has also taken action against such cryptocurrency firms as Coinseed.

In December 2023, cryptocurrency exchange KuCoin agreed to shell out a total of $22 million.

Crypto lobbying boom

With growing regulatory scrutiny, cryptocurrency firms have also intensified their lobbying efforts. Over the past four years, cryptocurrency firms have spent $149 million to elect potential allies in Congress, according to a recent report by the Washington Post.