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Two cryptocurrency lending platforms have been asked to cease activity in New York

Two crypto lending platforms have been directed to stop trading in New York (Source: Jievani Weerasinghe on Unsplash)
Two crypto lending platforms have been directed to stop trading in New York (Source: Jievani Weerasinghe on Unsplash)
Two crypto lending platforms have been ordered to stop trading in New York. The state's Attorney General, Letitia James, took this action as these companies have allegedly failed to register with the Attorney General's Office, a legal requirement in the state.

New York's Attorney General, Letitia James, has directed two cryptocurrency lending platforms to stop trading in the state. The two firms, which are reportedly Nexo and Celsius, have been sent cease and desist letters. Three other crypto lending companies have also been asked to provide the Attorney General with information about their businesses. Cryptocurrency lending companies allow users to borrow funds against cryptocurrency rather than traditional assets such as property.

A redacted version of a letter from the Attorney General's Office explained that they were "in possession of evidence that (each company) is unlawfully selling or offering for sale securities and/or commodities within or from the State of New York without having registered".

In New York, crypto lending platforms must abide by the Martin Act and register with the Attorney General's Office if they wish to operate or serve customers in the state. The Martin Act is an anti-fraud law passed in 1921. The Act gives New York's Attorney General the power to investigate companies for financial fraud.

In September, crypto trading company Coinseed was shut down following a lawsuit filed by James over allegedly selling a worthless token and defrauding investors. The Attorney General instructed trading platforms Bitfinex and Tether to cease all trading activity in New York earlier this year. In a statement about her recent actions, James said "Cryptocurrency platforms must follow the law, just like everyone else".

Buy The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order on Amazon

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Polly Allcock
Polly Allcock - Tech Writer - 296 articles published on Notebookcheck since 2021
I've been interested in technology for as long as I can remember. From a young age, I have loved gadgets and understanding how things work. Since graduating, I have worked for several technology companies across FinTech, AdTech and Robotics.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 10 > Two cryptocurrency lending platforms have been asked to cease activity in New York
Polly Allcock, 2021-10-21 (Update: 2021-10-21)