New York Attorney General Letitia James has issued a warning to New Yorkers about the risks involved in investing in cryptoassets.
According to a press release published by the New York Attorney General’s office, investors have lost “hundreds of billions” in digital assets as the crypto markets reach a record low. James issued an alert to New Yorkers, warning them of the dangers of investing in cryptoassets.
The report claims the industry of crypto is subject to “extreme and unpredictably high” price swings, making cryptoassets among the most high-risk investments on the market. The report also highlighted the market-wide crash in prices in May, with Bitcoin falling below 50% of its all-time high from November 2021.
Attorney General James said,
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.
James argued that crypto investments create “more pain than gain” for investors, while urging New Yorkers to steer clear of the industry.
The release outlined some of the risks involved in investing in cryptoassets, including being a highly speculative and unpredictable market, difficulty for users to cash out on investments, high transactions fees and “unstable stablecoins.”
The Attorney General also noted the lack of oversight in the industry, with no current federally regulated exchanges like the New York Stock Exchange offering digital assets.