Letitia James, a New York attorney, issued an investment alert to crypto investors, warning them about the hazards associated with cryptocurrencies. The warning comes after a scenario in which tens of thousands of investors lost billions as the stock market plummeted to new lows.
“Over and over again, investors are losing billions because of risky cryptocurrency investments.” “Even well-known virtual currencies from reputable trading platforms can still crash, and investors can lose billions in the blink of an eye.”
New York Attorney General James
She stated that virtual asset investments frequently result in more agony than profit. Attorney General James has cautioned New Yorkers to be cautious before investing their hard-earned money in cryptocurrency, saying that it might cause more concern than it can provide wealth.
The statement is understandable given the recent volatility in the cryptocurrency market. Many investors lost their life savings as a result of Terra’s demise and the bear market. Investors’ faith in cryptocurrency was shattered as a result of the drop.
Terra’s fall made crypto investors cautious
While investors may observe the bear market as an opportunity to add to their digital asset holdings, the fall of Terra came as a complete surprise to many. The catastrophic collapse of the Terra environment, on the other hand, has made investors warier.
Aside from the overall caution, the press statement also noted several potential risks for bitcoin investors. This includes unstable stablecoins, highly speculative value, difficulty cashing out, large and hidden transaction costs, and highly speculative value. Etc.
The Attorney General’s warning emphasizes her efforts to regulate the digital currency market while also protecting investors. Earlier this year, Attorney General James sent a notification to the investors, requesting that they pay proper taxes on their virtual currency assets.
Attorney General James ordered unregistered virtual assets lending platforms to halt operations in October 2021 for failing to meet their legal duties. Attorney General James addressed New Yorkers about the dangers of bitcoin investments in March 2021 and reminded investment platforms of their legal responsibilities.