New York AG Seeks Investors Impacted by Crypto Crash

Letitia James, the New York state attorney general, has issued an investor alert saying any New Yorker “deceived or affected” by the cryptocurrency crash to contact her office, a press release said Monday (Aug. 1).

There have been numerous high-profile crypto companies which have frozen withdrawals, laid off employees or filed for bankruptcy, the release said.

Investors have been left ruined, and James said the Office of the Attorney General (OAG) wants workers in the crypto industry who might have seen misconduct or fraud to file a whistleblower complaint — which they note can be done anonymously.

“OAG is interested in hearing from New York investors who have been locked out of their accounts, who are unable to access their investments, or who have been deceived about their cryptocurrency investments,” the release said.

Investors have lost “hundreds of billions” to cryptocurrency markets, especially with the collapse of the Terra and Luna digital currencies, along with account freezes for crypto staking or earning programs.

James is quoted in the release as saying the losses are “concerning.”

“Investors were promised large returns on cryptocurrencies, but instead lost their hard-earned money,” she said. “I urge any New Yorker who believes they were deceived by crypto platforms to contact my office, and I encourage workers in crypto companies who may have witnessed misconduct to file a whistleblower complaint.”

See also: Celsius Network Crash Leaves Customers Struggling Without Funds

Celsius, one of the companies that has collapsed and frozen withdrawals, has seen customer sentiment sour, PYMNTS wrote.

One client, in an unsigned letter to the judge overseeing the bankruptcy, said it had “seemed a worthwhile risk” originally. Celsius CEO Alex Mashinsky had made it seem like the platform was safe to invest in, with clients depositing crypto which would be loaned out and invested by the firm.

Celsius reportedly owed $4.7 billion to users as of a court filing from July.

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