INVESTOR ALERT: Attorney General James urges New Yorkers defrauded by crypto platforms to report concerns to the Auditor General

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

NEW YORK – New York Attorney General Letitia James today issued an investor alert urging any New Yorker who was defrauded or affected by the cryptocurrency crash to contact her office. Many high-profile cryptocurrency companies have frozen customer withdrawals, announced mass layoffs or filed for bankruptcy, while investors have been left in financial ruin. As part of the Office of the Attorney General’s (OAG) ongoing investigative work, the OAG is interested in hearing from New York investors who have been locked out of their accounts, who have not been able to access their investments, or who have been defrauded about their cryptocurrency investments. New Yorkers who have been affected by this behavior are strongly encouraged to report these problems to the Auditor General. Attorney General James is also encouraging workers in the cryptocurrency industry who may have witnessed abuse or fraud to file a whistleblower complaint with her office, which can be done anonymously.

“The recent turbulence and significant losses in the cryptocurrency market are worrying,” said Attorney General James. “Investors were promised great returns on cryptocurrencies, but instead lost their hard-earned money. I encourage any New Yorker who believes they were defrauded 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 Terra and Luna’s virtual currencies and account freezes on cryptocurrency staking or earning programs, such as Anchor, Celsius, Voyager and Stablegains, are strongly encouraged to contact the OAG’s Investor Protection Bureau. In addition, any New Yorker who believes they are the victim of fraudulent or deceptive conduct should also share their experiences with the OAG.

If you are concerned that you or someone you know has been the victim of investment fraud, you can contact the OAG’s Investor Protection Bureau online or email [email protected]. If you have worked in the crypto industry and believe you may have knowledge of wrongdoing, contact the OAG’s Investor Protection Bureau, 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 about the dangerous risks of investing in cryptocurrencies after the market hit record lows. 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 declare and pay taxes on their virtual investments. In October 2021, Attorney General James instructed unregistered crypto lending platforms to cease operations for failing to meet their legal obligations. In March 2021, Attorney General James warned New Yorkers about the risks of cryptocurrency investments and reminded investment platforms of their legal obligations.