New York Attorney General, Letitia James, has issued an order to two undisclosed cryptocurrency lending firms to cease their operations in New York immediately. According to a redacted version of a letter, James said that the Office of the Attorney General "was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities."
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"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.
One of the undisclosed services is operating in New York as a dealer, broker, or salesperson because its interest-bearing products, securities, are openly available for use by New York users, the letter reads. Moreover, according to the document "certain virtual currencies have been recognized by courts in New York as commodities."
The move comes a few months after cryptocurrency saving app Coinseed, accused of switching users' funds to dogecoin (DOGE) without their consent, had announced closure due to a lawsuit from the New York Attorney General (NYAG). According to Coinseed Founder and CEO, Delgerdalai Davaasambuu, the NYAG office decided to set a "precedent of using the infamous Martin Act on crypto companies using Coinseed."
James emphasized that the greed perpetrated by Coinseed and its CEO grew despite the fact the NYAG had filed the case against Coinseed and its executives.
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