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New York urges crypto market crash victims to speak out
Attorney General James urged workers in the crypto industry who might have witnessed fraud or misconduct to file a whistleblower report with her office.
2 min read
Updated: Aug. 2, 2022 at 10:36 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
New York’s Attorney General Letitia James has urged victims of the recent crypto market crash to contact her office.
The investor alert asked those who believe they have been deceived or locked out of their accounts by various crypto projects impacted by the recent market crash to contact the NYAG Investor Protection Bureau.
James also urged workers in the crypto industry who might have witnessed fraud or misconduct to file a whistleblower report with her office. The individual could file the whistleblower report anonymously.
James said:
“The recent turbulence and significant losses in the cryptocurrency market are concerning. Investors were promised large returns on cryptocurrencies but instead lost their hard-earned money.”
The press release mentioned the collapse of the Terra/LUNA ecosystem and “account freezes on cryptocurrency staking or earning programs, such as Anchor, Celsius, Voyager, and Stablegains,” have significantly affected New Yorkers.
Meanwhile, those who know someone that the collapse has impacted can still contact the attorney general’s office.
New York has had several attempts at regulating the crypto industry. In October 2021, the attorney general office ordered all unregistered crypto lending platforms to cease operations.
The attorney general issued a taxpayer notice this year directing digital assets investors to declare and pay tax on their assets. The office reached a settlement of close to $1 million with BlockFi for offering unregistered securities in June.
US states targeting Celsius, others
While New York is just declaring its interest in investigating crypto lenders like Celsius and others, several US states like Vermont, Alabama, and Texas have opened investigations into how these firms operated.
Vermont’s Department of Financial Regulation (DFR) declared that Celsius mismanaged its users’ funds and that it was deeply insolvent.
Regulators in Alabama and Texas were also investigating whether the firms’ offerings qualified as securities and whether they met disclosure requirements.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.