Investing in Cryptocurrencies Is 'Not Prudent,' Says New York Attorney General

New York Attorney General Letitia James issued an alert to cryptocurrency investors and a strongly worded warning to industry participants.

AccessTimeIconMar 1, 2021 at 5:44 p.m. UTC
Updated Sep 14, 2021 at 12:19 p.m. UTC
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Warning of the "extreme risks" of cryptocurrencies, New York State Attorney General Letitia James published a statement Monday saying investing in digital assets is "not prudent."

James' tweet comes after her office released an "alert to investors" of the risks involved in cryptocurrency markets. The memo includes risks such as "underlying value is highly subjective and unpredictable," "increased risk of market manipulation," and potential difficulties in cashing out of investments.

The warning to investors comes amid strong interest from retail investors who are contributing significantly to bitcoin's ongoing rally and are matched with increasing demand from institutional and corporate buyers, per CoinDesk previous reporting.

The Attorney General had a message for industry participants, too. After suing investment application Coinseed and settling an inquiry with Tether and Bitfinex, James said Monday, "We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down."

A spokesperson did not immediately return a request for comment.

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