New York Attorney General Letitia James has issued a new warning to residents regarding what she defined as the “dangerous risks of investing in cryptocurrencies” following recent market tumult.
James stated that cryptocurrencies were highly speculative and carried unpredictable value, adding there could be difficulty in cashing out these investments. She also pointed to the higher transaction costs and hidden fees often involved in these investments, and she warned that so-called “stablecoins” were anything but stable. She added that no federal regulatory agency has oversight on the cryptocurrency markets, and those who become victims of fraudulent activity have very limited legal resources since many trading platforms are not located in this country.
“Over and over again, investors are losing billions because of risky cryptocurrency investments,” said James in a statement issued by her office. “Even well-known virtual currencies from reputable trading platforms can still crash and investors can lose billions in the blink of an eye. Too often, cryptocurrency investments create more pain than gain for investors. I urge New Yorkers to be cautious before putting their hard-earned money in risky cryptocurrency investments that can yield more anxiety than fortune.”
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