New York Attorney General Letitia James announced that she ordered two cryptocurrency lending platforms to stop operating within the state.
“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,” said James.
James explained that the two firms were not registered as required by the General Business Law and went against the Martin Act.
James further explained in their press release that lending products or services “demonstrate that they fall squarely within any of several categories of security under the Martin Act.”
“Entities offering such products from New York or to New Yorkers must be registered with the OAG as brokers, dealers, or salespersons unless exempted,” reiterated James.
The Attorney General’s office also ordered the two firms to preserve all physical and electronic records and data pertaining to the issues raised in their cease and desist letter.
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