New York Regulator Jumps In to Protect Investors Amid Freezing of Crypto Funds

Bhushan Akolkar
August 2, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
new york Attorney general cryptocurrencies

Regulators from New York City have recently jumped in to help investors who have been recently duped or burned by crypto firms. On Monday, August 1, New York Attorney General Letitia James issued an investor alert asking investors who feel cheated to contact her office.

During the second quarter of 2022, we have seen several crypto businesses going insolvent and freezing withdrawals on the platforms as they struggled to meet the high liquidity demand. Several crypto firms and lenders filed for bankruptcies leaving investors in financial ruin.

The Office of the Attorney General (OAG) said that it’s interested in hearing from New York investors who have been locked out of their accounts and were unable to access their investments. They also want to hear from investors who have been deceived about their crypto investments. Attorney General Letitia James said:

“The recent turbulence and significant losses in the cryptocurrency market are concerning. Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money.

I urge any New Yorker who believes they were deceived by crypto platforms to contact my office, and I encourage workers in crypto companies who may have witnessed misconduct to file a whistleblower complaint.”

The Recent Crypto Winter

The second quarter of 2022 witnessed heavy liquidations over concerns of popular firms like Three Arrows Capital, Celsius Networks, and Voyager Digital. It all started with the dramatic devaluations of projects like Terra and LUNA.

This has forced regulators to step into the matter and have a close look at the crypto sector. The recent action from New York OAG is one of the first major initiatives from the regulators.

Last month in July, the crypto markets bounced back with some strong institutional demand and inflows. However, on-chain metrics suggest that the network demand hasn’t picked much for Bitcoin and Ethereum despite the price surge. This could be a classic case of a bear market rally and not a trend reversal.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.