James' Firm Stance on Crypto Regulations

New York Attorney General Letitia James has reiterated her firm stance against deceptive practices within the crypto sector. Her recent actions emphasize her commitment to fighting against unregulated crypto activities.

Following a recent landmark $2 billion settlement with crypto lender Genesis, James highlighted the importance of regulatory compliance for all crypto entities operating in the state.

Landmark Settlement with Genesis

Last week's settlement with Genesis marked a record in New York's legal history—the largest ever.

In October 2023, the legal action stemmed from allegations that Genesis misled investors about the risks involved in its operations. Consequently, Genesis is required to return the fraudulently acquired funds to the affected parties and will cease its operations within New York.

"This settlement sets a precedent for other crypto firms operating outside the bounds of regulation," James stated. The implications of this landmark settlement are significant, as it signals a clear message to the crypto industry about the consequences of deceptive practices and the necessity of regulatory compliance.

A History of Vigorous Regulation

Letitia James' approach to crypto regulation is not just vigorous, it's relentless. Since being elected New York's Attorney General in 2018, she has launched a series of crackdowns against crypto companies, leaving no stone unturned.

Her aim is clear-to ensure the crypto market adheres to established financial laws. Her legal actions, often targeting high-profile figures and companies in the crypto space, demonstrate her unwavering commitment to this cause.

In January 2023, James took legal action against Alex Mashinsky, the former CEO of Celsius, accusing him of defrauding over 26,000 New Yorkers. Consequently, in July 2023, Mashinsky was arrested after facing legal charges from various US regulators such as the Securities and Exchange Commission (SEC).

Legal Action Against KuCoin and Others

In March 2023, James filed a lawsuit against the crypto exchange KuCoin. She alleged that KuCoin operated as an unregistered securities trading platform, illegally selling and purchasing securities and commodities.

This lawsuit is part of her broader effort to hold crypto companies accountable. If successful, it could lead to significant financial penalties and operational restrictions for KuCoin, setting a precedent for other unregistered crypto exchanges.

Her legal endeavors include a protracted battle with Tether and crypto exchange Bitfinex, initiated in April 2019. This confrontation culminated in February 2021 with a settlement that imposed an $18.5 million fine on the companies. This fine underscored the consequences of disregarding regulatory mandates.