New York Attorney General Laetitia James issued a warning to cryptocurrency investors and reminded industry participants to regulate their activities.
New York Attorney General’s Office (NYAG) Letitia James released a statement saying investing in digital assets is “impractical” and carries “extreme risks.”
According to the warning, “the underlying value of cryptoassets is highly subjective and unpredictable”, they carry “increased risk of market manipulation” and potential difficulties in cashing investments.
The warning came amid growing interest from retail investors, who are contributing significantly to the ongoing rally in Bitcoin, and growing demand from institutional investors.
“We are making it clear to the entire industry that either you play by the rules or you will be closed,” said James.
Recall that in February, the New York prosecutor’s office and the SEC accused the creators of the automated application for investing in cryptocurrency Coinseed of defrauding investors and violating securities laws.
In addition, the NYC Attorney’s Office resolved a lawsuit with Bitfinex and Tether last week. The firms will pay $ 18.5 million in fines and will be required to provide quarterly reports on their activities.