New York Attorney General Letitia James warned against investing in cryptocurrencies. She said the crypto market is “highly unpredictable” and “volatile,” noting that the market “reached record lows” last month.
NY Attorney General Warns About Cryptocurrencies
New York Attorney General Letitia James issued a warning Thursday about investing in cryptocurrencies. The official Twitter account of the New York Attorney General’s office tweeted.
The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions of dollars.
James said, “New Yorkers should be cautious and think twice before investing their hard-earned money in this volatile market.” He added.
Last year, James shut down the cryptocurrency trading platform Coinseed. She also took action against two crypto lending platforms.
The New York attorney general’s warning followed weeks of cryptocurrency sell-offs. However, many on Twitter disputed her claim that the crypto market had reached record lows in the last month. As of this writing, bitcoin is trading at $30,505.32, up more than 3% over the past seven days but down 21% over the past 30 days.
Several countries have also warned about investing in cryptocurrencies following the crypto market sell-off. Additionally, the cryptocurrencies Terra (LUNA) and Stable Coin Terrausd (UST) collapsed in May, losing nearly all their value.
After the collapse of the two cryptocurrencies, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler warned that many crypto tokens would fail.
This week, Singapore’s deputy prime minister advised private investors to stay out of cryptocurrencies. The governor of India’s central bank, the Reserve Bank of India (RBI), also issued a warning about cryptocurrencies following the LUNA and UST debacle.
Bank of England Governor Andrew Bailey warned last week that Bitcoin has no intrinsic value and is not a practical means of payment.
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