Digital Currency Group (DCG) is objecting to the settlement between the New York attorney general and Genesis – the failed crypto lender that was among DCG’s array of digital assets businesses.
New York Expands Fraud Case Against Digital Currency Group to $3 Billion
New York Attorney General Letitia James has amplified its fraud case against Digital Currency Group (DCG), now saying the company is responsible for $3 billion in investor losses tied to the Gemini Earn product and to direct investments with Genesis, according to a new court filing.
Reviewing the Tether Documents
Last week, CoinDesk received documents in response to a New York state Freedom of Information Law request about the details of Tether’s reserves. These documents were released two years after our original filing in 2021 and only after a full-blown legal fight with Tether, which CoinDesk won in February.
Coin Cafe Ordered By New York AG to Pay Back $4.3M in Fraudulent Fees
Brooklyn-based crypto trading platform Coin Cafe is paying back $4.3 million to defrauded investors, according to a Thursday statement from the New York Attorney General’s office, which accused the company of misleading customers about “exorbitant and undisclosed” fees.
Coin Cafe Ordered By New York AG to Pay Back $4.3M in Fraudulent Fees
Brooklyn-based crypto trading platform Coin Cafe is paying back $4.3 million to defrauded investors, according to a Thursday statement from the New York Attorney General’s office, which accused the company of misleading customers about “exorbitant and undisclosed” fees.
Coin Cafe Ordered By New York AG to Pay Back $4.3M in Fraudulent Fees
Brooklyn-based crypto trading platform Coin Cafe is paying back $4.3 million to defrauded investors, according to a Thursday statement from the New York Attorney General’s office, which accused the company of misleading customers about “exorbitant and undisclosed” fees.
Fiat-backed stablecoins could be used to post bail in New York under proposed bill
A New York lawmaker has introduced a new bill that proposes to allow certain stablecoins to be accepted as payment for bail.
New York Attorney General Proposes New Crypto Regulatory Act
New York Attorney General (AG) Letitia James has proposed a new state bill to regulate the cryptocurrency industry further, as she believes the space is enduring “rampant fraud and dysfunction”. This new set of crypto regulations would impose independent public audits of crypto exchanges, ensuring that New York residents do not lose their cryptocurrency investments to deceptive business practices.
New York AG Announces ‘Strongest And Most Comprehensive’ CRPTO Act
On Friday, May 5th, the office of the New York Attorney General released a press statement, disclosing the plans to augment state regulations over cryptocurrency and crypto-related organizations. James proposed the “Crypto Regulation, Protection, Transparency, and Oversight” (CRPTO) Act as a new piece of crypto legislation.
James described the CRPTO Act as “the strongest and most comprehensive” batch of regulations over the crypto industry in the United States. The AG’s office noted that the proposed bill, if passed, will safeguard investors, consumers, and the broader economy.
In her proposal, the attorney general suggested that the state of New York impose independent public audits of crypto exchanges and prohibit residents from owning brokerages and cryptocurrency-issuing companies to prevent conflicts of interest. Additionally, the bill would mandate crypto organizations to reimburse customers for fraud-related losses.
The CRPTO Act is quite comprehensive, as it also tackles the regulation of the stablecoin ecosystem. The proposed state law specifies that firms should only be allowed to market a digital asset as a stablecoin if it is backed one-to-one by “U.S. currency or high-quality liquid assets as defined in federal regulations”.
The CRPTO proposal will make it to the floor of the New York State Senate and Assembly during the 2023 legislative session. If passed, it would give the attorney general’s office the authority to issue subpoenas for violations of the regulations and impose civil penalties (up to $10,000 for individuals and $100,000 for organizations).
New York Regulators To Continue Crackdown On Crypto
Following the huge collapses that rocked the crypto industry in 2022, various federal agencies, particularly the Securities and Exchange Commission (SEC), have turned up the heat on the digital asset industry this year. In response, several crypto organizations have bemoaned the lack of clarity clouding cryptocurrency regulations in the country.
Interestingly, not only the Federal regulatory authorities are currently on high alert. State regulators, like the New York AG’s office, have also intensified regulatory efforts on the crypto industry.
For instance, the New York Attorney General’s office filed a lawsuit against the crypto platform KuCoin in March, alleging the firm provided brokerage services without properly registering. In February, the New York Department of Financial Services (DFS) ordered Paxos to stop minting stablecoin BUSD, stating that the dollar-pegged asset is an unregistered security.
With the proposed set of crypto regulations by attorney general Letitia James, it doesn’t appear that the New York regulators are slowing down in their clampdown on the crypto industry this year.
In any case, the cryptocurrency industry continues to show strength, with a market cap of $1.177 trillion.
New York Attorney General Seeks New Crypto Powers for State Regulators
The bill follows legal suits taken by Letitia James in connection to crypto companies like Celsius, CoinEx and Nexo.
Celsius Founder Mashinsky Denies ‘Baseless’ Fraud Claims From New York State
Attorney General Letitia James said Mashinsky misled investors about the health of the now bankrupt crypto lender.
Bitfinex Says It’s Nearly Done Turning Over Documents to NYAG
The document production process has already stretched over a year.
New York Attorney General Calls Bitfinex’s Legal Stance ‘Deeply Perverse’ in New Filing
In a sharply worded brief, the New York Attorney General’s Office has criticized the exchange’s tactics in its case involving the Tether stablecoin’s backing.
New York Supreme Court Denies Bitfinex’s Lack-of-Jurisdiction Claim
iFinex claimed the NY AG lacked sufficient jurisdiction for an investigation into the company’s activities.
Bitfinex Is Planning to Issue an Exchange Token, Shareholder Says
Cryptocurrency exchange Bitfinex is planning to issue a proprietary exchange token, according to a shareholder claiming knowledge of the plan.
Bitfinex Needs ‘A Few Weeks’ to Unfreeze Funds, CFO Tells Shareholder
A Bitfinex shareholder says its CFO told him the exchange needs ‘a few weeks’ to recover the funds at issue in the New York Attorney General probe.
Crypto Exchanges Should Take a Hard Look at IP Address-Masking Services
Cryptocurrency exchanges will likely have to reckon with VPN access as part of any regulatory or law enforcement actions for market manipulation.
Regulators Are Landing Punches, But There’s a Long Crypto Fight Ahead
From ShapeShift’s capitulation to KYC to the New York Attorney General’s critical look at exchanges, officialdom is striking heavy blows. Stay tuned.
Coinbase Refutes Claims in New York Attorney General’s Exchange Report
Coinbase and other exchanges have hit back at claims of vulnerability to market manipulation in a report from the New York Attorney General’s Office.
New York AG Report Faults Crypto Exchanges for Manipulation Risks
The NY Attorney General’s Office stated that many crypto exchanges cannot monitor abusive trading activity, and referred 3 for potential violations.