New York halts operations of two Cryptocurrency lending platforms

New York halts operations of two Cryptocurrency lending platforms

The state attorney general, Letitia James on Monday, ordered a halt to the operations of two cryptocurrency lending platforms in New York.

She also directed three other platforms to provide information about their business.

James in a redacted version of a letter dated Monday said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities.”

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This directive is coming weeks after James won a court order forcing the closure of cryptocurrency exchange Coinseed.

The crux of the Matter

In February, the attorney general filed a lawsuit seeking to shut down Coinseed for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens.

On Monday, James warned investors about “extreme risk” when investing in cryptocurrency and also those facilitating in the trading of virtual currencies.

The attorney general said, “Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately.”

In recent times, regulators in the United States have ramped up scrutiny of cryptocurrency transactions that were hitherto a gray area.



Author: Greg