The recent bearish wave brought many crypto companies to their knees as they couldn’t stand the losses. The result of these changes was the increasing trend of collapse and defaulter. While some companies have gone for lay-offs to ensure that they make up for their losses. As there are possible chances of a scam, NY Attorney General Letitia James has urged the users in a press release to share the details if they think they have been defrauded.
The details of possible scams are yet to come, as many investors will share the details. The recent collapse of Terra UST, 3 Arrows Capital, and many other names have left myriads of stories behind. The main problem is the lack of awareness regarding the possible steps the customers could take. If educated in this regard, various fraudsters can be brought to justice.
Here is a brief overview of the NY Attorney General’s press release and its possible impacts.
Market meltdown and ensuing losses
The market saw its most difficult time in March 2022 when the decline began. There were various reasons, including geopolitical tension, the ensuing Russia-Ukraine war, inflation, and economic regression. While the collapse of many companies due to scams and hacks was also one of the main reasons. Customers wanted the security of their capital because the market meltdown had made the situation difficult.
As big names like Terra UST collapsed in May 2022, customers had little awareness about what to do. Also, many small exchanges and companies have filed for defaulter status, and the customers have been left with nothing. NY Attorney General has taken the initiative to help them and bring the guilty to justice. A press release has been shared from the official website of the NY Attorney General Letitia James to share the details of possible fraud.
New York state has taken some tough decisions regarding crypto in recent months. Its lawmakers passed a bill regarding a ban on Bitcoin mining that was run using carbon-based power sources. It has also gone for some other regulations to protect its residents from the possible chances of scam.
Letitia James urging investors to disclose details
The press release from the NY Attorney General office said that many high-profile companies have filed applications for defaulter status and locked funds of investors. While others have frozen investor funds and affected the customers. The mass lay-offs and other changes in the market have wreaked havoc on the investors. The financial ruin that this situation has caused is too large, and the NY Attorney General Office is ready to serve the affected.
It has asked for two separate measures for both investors and employees. If the investors think they have been scammed, they should file an application regarding fraud. While if the employees want to share the details of possible misconduct or fraud, they can file a whistleblower application. The latter will be an anonymous application and won’t cause them any harm.
The loss of billions of dollars during the recent crash is a matter of concern for the mentioned office. They will take measures against those companies which promised huge returns on investments but instead resulted in the loss of the actual amount. NY Attorney General office expects investors and whistleblowers to share the details and file applications.
Conclusion
NY Attorney General Office has asked the affected customers of the recent market crash to share the details of possible fraud. It has assured the investors that they will be assisted if they believe any misconduct has occurred. It has also asked the employees of crypto-related companies to come forward and file applications if they have seen any misconduct or fraud. Their applications will be kept anonymous and legal action will be taken against the companies.
