New York Attorney General says cryptocurrencies are 'high-risk' and 'unstable', and urges caution when trading

<p><img src="https://static2.businessinsider.com/image/603d3e5a87d37600190d0758-2400/GettyImages-1294702314.jpg" border="0" alt="Visual representations of digital cryptocurrency Bitcoin (BTC) are arranged on a circuit board" data-mce-source="Yuriko Nakao/Getty Images"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>New York Attorney General Letitia James on Monday called cryptocurrencies "high-risk" and" unstable" investments in a rebuke of the rapidly evolving market, urging investors to exercise "extreme caution" when trading digital assets. The state's top law enforcement official further warned investors of "speculative bubbles".</p><p>"Too often, greedy industry players take unnecessary risks with investors' money," James said in <a href="https://ag.ny.gov/sites/default/files/crypto-investor-notice.pdf">an investors' alert</a>. "All investors should proceed with extreme caution when investing in virtual currencies. Cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains."</p><p>James also reminded brokers, dealers, and advisors, among others, of the possibility of facing "<a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDEsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMTAzMDEuMzYxMzMxNzEiLCJ1cmwiOiJodHRwczovL2FnLm55Lmdvdi9zaXRlcy9kZWZhdWx0L2ZpbGVzL2NyeXB0by1pbmR1c3RyeS1ub3RpY2UucGRmIn0.SUvMS88fnUyNFIvwvkxD-nVBSOTvw7rFuGdbqi8iLro/s/1448065778/br/98490380502-l">both civil and criminal liability</a>" for unauthorized and unregistered business transactions.</p><p>"Many operators of virtual currency trading platforms are themselves heavily invested in virtual currencies, and trade on their own platforms without oversight," she said.&nbsp;</p><p>The statement is the latest action Jame, a Democrat, has taken with regard to policing the industry.&nbsp;</p><p>On February 17, James announced a <a href="https://markets.businessinsider.com/currencies/news/crypto-platform-coinseed-sued-by-new-york-and-sec-for-selling-worthless-tokens-2021-2-1030094351">lawsuit against cryptocurrency trading platform Coinseed</a> for defrauding investors out of more than $1 million via undisclosed fees and through the sale of what she called "worthless" tokens. A week after that, the office of the Attorney General halted the <a href="https://www.businessinsider.com/bitfinex-tether-owner-pays-185-million-fine-to-settle-nyag-cryptocurrency-cover-up-charges-2021-2">illegal activities of both Bitfinex and Tether</a> in New York.</p><p>"Today, we're sending a clear message to the entire industry that you either play by the rules or we will shut you down," she said. " We will not hesitate to take action against anyone who violates the law."</p><p>The statement was also accompanied by five warning signs of investment fraud as well as a link to a<a href="https://lnks.gd/l/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDIsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMTAzMDEuMzYxMzMxNzEiLCJ1cmwiOiJodHRwczovL2FnLm55Lmdvdi9pbnZlc3Rvci1wcm90ZWN0aW9uLWJ1cmVhdS1jb21wbGFpbnQtZm9ybSJ9.sY6q-zyNCprf7npDwR5RfOl7hNoLxD_73cvo-IpykiU/s/1448065778/br/98490380502-l"> complaint form</a>.</p><p><a href="https://www.businessinsider.com/cryptocurrencies-bitcoin-high-risk-and-unstable-new-york-ag-says-2021-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/candy-corn-ingredients-made-of-gelatin-lac-resin-halloween-sugar-syrup-2017-10">What candy corn is actually made of</a></p>
Click here to read full news..