New York directs two cryptocurrency lending platforms to cease activity

New York Crypto

Two cryptocurrency lending platforms were asked to cease activities in New York by the state’s attorney general on Monday and three other platforms were directed to provide information about their business.

The move comes weeks after New York Attorney General Letitia James won a court order forcing the closure of cryptocurrency exchange Coinseed.

In a redacted version of a letter dated Monday, James said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities”.

Regulators in the US have been ratcheting up scrutiny of a world that has so far existed in a regulatory grey area, against the backdrop of rising tension between the crypto industry and regulators worldwide.

James filed a lawsuit in February to shut down Coinseed for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens.

The state’s attorney general warned investors about “extreme risk” when investing in cryptocurrency and issued warnings to those facilitating in the trading of virtual currencies.

“Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately,” James said on Monday.

Related Article:
Facebook chief scientist says 'true AR glasses' at least five years away

The team at Platform Executive hope you have enjoyed the ‘New York directs two cryptocurrency lending platforms to cease activity‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Noor Zainab Hussain in Bengaluru. Editing by Shounak Dasgupta.

You can stay on top of all the latest developments across the platform economy, find solutions to your key challenges and gain access to our problem-solving toolkit and proprietary databases by becoming a member of our growing community. For a limited time, our subscription plans start from just $16 per month.

Share this Article