Sunday, September 25, 2022

New York Regulators Extends Helping Hand To Victims of Crypto Scam

The city of New York may finally be coming to the aid of its residents who have in one way or another, lost their funds to a crypto scam or similar situation. These include investors who may have been scammed in a scheme, or who lost their funds when a crypto firm they are connected to, went bankrupt.

To this cause, the Attorney General of New York, Letitia James has asked such investors to come forward to the Office of the Attorney General (OAG). James said in a press release :

“I urge any New Yorker who believes they were deceived by crypto platforms to contact my office.”

Furthermore, she also implored workers connected to crypto firms, to come and file whistleblower complaints, if ever they experience any form of misconduct on the part of the firm or its ownership.

Crypto scam: One of the widespread impacts of crypto winter

The sudden reality that came in with the second quarter of 2022, is that several crypto businesses suffered. In fact, news of crypto firms going insolvent, freezing withdrawals, and filing for bankruptcy almost became a trend. But in as much as these firms struggled with liquidity demands, investors were directly impacted, with many of them left in a financial mess.

Regardless of whatever the situation is, however, investors should under no circumstances, have to bear the losses of a crypto firm. Especially, not with their personal funds. But as it turns out, investors who were initially promised large returns on their crypto investments, have now instead, lost their hard-earned money.

Regulators step in

In the aftermath of popular firms like Three Arrows Capital (3AC) and Celsius going bankrupt, regulators have been forced to step in. One of their major concerns, however, is to scrutinize the very basis of these firms’ existence. Regulators are looking to determine what measures are in place to protect investor funds against unforeseen contingencies. And that is exactly what the New York OAG hopes to achieve with its recent action.

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