New York Attorney General Issues Call for Crypto Industry Whistleblowers

New York Attorney General Letitia James has also called on spurned crypto investors to reach out, signaling potential enforcement actions


NYAG Letitia James; Source: Shutterstock


key takeaways

  • New Yorkers let down by crypto platforms are encouraged to contact the Attorney General’s office
  • “Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money,” New York’s Attorney General wrote

New York Attorney General Letitia James has called on crypto buyers in the state who’ve been “deceived” or affected by the recent crash to contact the Investor Protection Bureau.

The Office of the Attorney General (OAG) wants to hear from New Yorkers locked out of their digital asset accounts, unable to access their investments or otherwise done wrong by crypto startups, it said in an alert issued on Monday.

Crypto industry workers have also been encouraged to file whistleblower complaints if they have witnessed misconduct.

The alert comes after crypto markets faced contagion following TerraUSD’s crash and the collapse of high-profile lenders such as Celsius and Voyager Digital. Withdrawal freezes on these networks, among others, have blocked investors from accessing their funds as firms work on their insolvency issues.

“The recent turbulence and significant losses in the cryptocurrency market are concerning,” James wrote in a statement. “Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money.”

But despite massive liquidations across May and June, demand for crypto assets remains relatively strong.

Cryptocurrency’s collective market value jumped more than 8% over the past week, now sitting at just under $1.1 trillion, although that’s still down by more than half over the year to date. Bitcoin’s price is up more than 7%, Blockworks Research shows, while ether has risen 12%.

Eliézer Ndinga, director of research at 21Shares, told Blockworks in an interview that given recent price developments and the fact that there have been more inflows into bitcoin exchange-traded products, there is a lot more market enthusiasm on social media. 

“Many investors are in the money, and that’s basically a testament to the fact that we are outside the capitulation zone,” he said.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


And a look into the newest name on the Trump ticket: Sen. JD Vance


Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps


The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks


PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants


Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians


Vance, an Ohio Republican, is largely seen as crypto-friendly