A visual representation of digital currencies.
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New York Attorney General Letitia James on Monday issued a frightening warning to investors and industry members about the dangers of cryptocurrencies.
“We are sending a clear message to the entire industry that you are playing by the rules, or that we will shut you down,” she said in a press release.
The warning from James, who addressed individual investors and members of the crypto industry, comes amid an important start to 2021 for digital assets such as bitcoin.
The cryptocurrency rose to a new high of more than $ 58,000 earlier this month after receiving attention from Wall Street banks, companies such as Tesla and even the US government.
Bitcoin, created in 2009, has evolved from a protest against the banking system to something of a ‘digital gold’ that is starting to import mainstream investors.
Investment banks such as JPMorgan and Goldman Sachs have shown interest in the asset class. In addition, companies like Mastercard have made significant moves to support cryptocurrencies. Tesla invested $ 1.5 billion in bitcoin in February.
The price of bitcoin has risen by more than 10% to $ 48,528 over the past 24 hours from about 13:51 ET, according to CoinDesk. Other popular digital currencies include etherum and litecoin.
James told members of the crypto industry in New York that they must be registered at the office of the Attorney General’s Investment Protection Bureau.
Parties who are required to register but do not do so are subject to civil and criminal law enforcement, the office said in a statement.
Monday’s warning comes two weeks after the attorney general filed a lawsuit against Coinseed, a digital currency trading platform.
James claims that Coinseed operates a virtual currency trading company in New York, which has been an unregistered broker-dealer for more than three years while raising more than $ 1 million in investors’ assets.
“We will not hesitate to take action against anyone who violates the law,” she said.
“Too often, greedy players in the industry take unnecessary risks with investor money, but today we compare the playing field and give warnings to investors as well as members of the industry across the country,” James added.
She also urged investors to be cautious about investing in cryptocurrencies.
“All investors need to be extremely careful when investing in virtual currencies. Cryptocurrencies are high-risk volatile investments that can lead to devastating losses just as quickly as they can profit,” James said.
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