AG James encourages workers in the crypto industry who
May have witnessed misconduct to file a whistleblower complaint

NEW YORK – New York Attorney General Letitia James issued an Investor Alert today urging any New Yorkers cheated or affected by the cryptocurrency crash to contact her office. Many top cryptocurrency firms froze customer withdrawals, announced mass layoffs or filed for bankruptcy, while investors were left in financial ruin. As part of the ongoing investigative work of the Office of the Attorney General (OAG), the OAG wants to hear from New York investors who have been blocked from their accounts, unable to access their investments, or who have been deceived about their cryptocurrency. investments. New Yorkers who have been impacted by this behavior are strongly encouraged to report these problems to the OAG. Attorney General James also encourages workers in the cryptocurrency industry who may have witnessed misconduct or fraud to file a whistleblower complaint with his office, which can be done anonymously.

“Recent turbulence and significant losses in the cryptocurrency market are concerning,” said Attorney General James. “Investors were promised big returns on cryptocurrencies, but instead lost their hard-earned money. I urge any New Yorkers who believe they have been misled by crypto platforms to contact my office, and I encourage workers at crypto companies who may have witnessed misconduct to file a whistleblower complaint.

Over the past few months, investors have lost hundreds of billions of dollars in the cryptocurrency markets. New Yorkers who have been affected by the dramatic devaluations of the Terra and Luna virtual currencies and the freezing of accounts on cryptocurrency staking or earning programs, such as Anchor, Celsius, Voyager and Stablegains, are strongly encouraged to contact OAG Investor Protection Office. In addition, any New Yorkers who believe they are the victim of fraudulent or deceptive behavior should also share their experiences with OAG.

If you are concerned that you or someone you know has been the victim of investment fraud, contact the OAG’s Investor Protection Office online or email [email protected] ny.gov. If you have worked in the crypto industry and believe you have knowledge of wrongdoing, contact the OAG Investor Protection Office, email [email protected], or file a complaint using the online whistleblower portal.

Today’s Investor Alert continues Attorney General James’ efforts to regulate the cryptocurrency industry and protect New York investors. In June, Attorney General James warned New Yorkers of the dangerous risks of investing in cryptocurrencies after the market hit record highs. Also in June, Attorney General James reached a nearly $1 million settlement with crypto platform BlockFi Lending LLC for offering unregistered securities. Earlier this year, Attorney General James issued a Taxpayer Notice to virtual currency investors and their tax advisors to accurately report and pay taxes on their virtual investments. In October 2021, Attorney General James ordered unregistered crypto lending platforms to cease operations for failing to fulfill their legal obligations. In March 2021, Attorney General James warned New Yorkers of the risks of investing in cryptocurrency and reminded investment platforms of their legal obligations.