NY Attorney General Looks for Crypto Crash Victims
New York State Attorney General Letitia James is encouraging any resident deceived or affected by the cryptocurrency crash to report it to her office.
The Democrat says investors were promised high returns on cryptocurrencies but, instead, lost thousands of dollars after being locked out of their accounts and were unable to access their investments.
The Attorney General is also looking to talk to workers in the cryptocurrency industry who may have witnessed misconduct or fraud. She encourages those workers to file a whistleblower complaint with her office, which can be done anonymously.
The dramatic devaluations in the Terra and Luna virtual currencies and the account freezes on “crypto” staking or earning programs have cost investors hundreds of billions of dollars according to a news release from the Attorney General’s Office.
The release says staking or earning programs such as Anchor, Celsius, Voyager and Stablegains are of particular interest and New Yorkers affected by involvement in those programs are encouraged to contact the OAG Investor Protection Bureau.
Residents can just share their experiences without filing a formal complaint, if they wish.
Crypto investors can also email the OAG office at firstname.lastname@example.org. The online whistleblower portal is also available through the email.
The Attorney General in June warned New Yorkers of risks of investing in cryptocurrencies after the market reached record lows. The office also reached a nearly one-million dollar settlement with BlockFi Lending LLC for offering unregistered securities.
The Attorney General is also keeping an eye on taxes involving virtual currency investors and their tax advisors as they navigate the tricky, new world of reporting virtual earnings on their cryptocurrency investments.