Cryptocurrency exchange CoinEx has been sued by the New York Attorney General, Letitia James, alleging the firm falsely represented itself as an exchange due to failing to register as a securities and commodities broker-dealer in the state. A 38-page petition filed by James in the New York Supreme Court on Feb. 22 alleged CoinEx “engaged in repeated and persistent fraudulent practices” and violated the state’s Martin Act — considered one of the most strict anti-fraud and securities regulation laws in the United States. She also asserted CoinEx listed various tokens that qualified as “both commodities and securities” naming Amp (AMP), …

The New York State Department of Financial Services (NYDFS) has announced enhancements to its ability to detect illegal activities with virtual currency among the entities its regulates. The new capacities are part of its efforts to keep pace with the industry and respond proactively to the virtual currency market, it said. The NYDFS released a short statement on its new abilities on Feb. 21 that contained no specifics about the “new insider trading and market manipulation risk monitoring tools.” However, the statement promised: “The new enhancements will provide the Department with additional capabilities to detect potential insider trading, market manipulation, …

The United States Securities and Exchange Commission charged cryptocurrency lending firm Genesis Global Capital and crypto exchange Gemini with selling unregistered securities through Gemini’s “Earn” program. The Commodity Futures Trading Commission started the process of getting a default judgment in its case against Ooki DAO after the decentralized autonomous organization missed the deadline to respond to the lawsuit. It also filed suit against digital artist Avraham Eisenberg and charged him with two counts of market manipulation in connection with an exploit of the decentralized finance platform, Mango Markets. In South Korea, tax agents raided the Seoul headquarters of cryptocurrency exchange …

The New York Public Service Commission (PSC) was sued by environmental activists on Jan. 13 for approving the takeover of a cryptocurrency mining facility in the state. According to The Guardian, the state Public Service Commission (PSC) is responsible for regulating public utilities, and authorized in September 2022 the conversion of the Fortistar North power plant into a crypto mining site. The facility is located in Tonawanda, a city less than ten miles from Niagara Falls, and was set to be taken over by the Canadian crypto mining firm Digihost. Plaintiffs claim that the approval violates New York's climate law …

A recent photo of what appears to be former Alameda Research CEO Caroline Ellison in a Manhattan coffee shop in New York has been making the rounds on Twitter. On Dec. 4, two photos began circulating on Twitter, appearing to show Ellison ordering a coffee at the Ground Support Cafe in Manhattan. Adding some weight to the possible sighting, Gopher, the Golden Doodle puppy which is understood to be owned by FTX and Alameda execs also seems to be in the photo next to Ellison. Ellison's last speculated location was Hong Kong, which was suggested in the aftermath of the …

The New York State Department of Financial Services (DFS) has submitted a proposed change in state laws that would allow it to charge licensed crypto companies for regulating them. While that may seem like an odd proposition, under Financial Services Law (FSL) it is common practice for the DFS to charge licensed non-crypto financial entities for the cost and expenses of maintaining oversight over them. The proposal is led by DFS Superintendent Adrienne Harris, who announced the move via the DFS website on Dec. 1 and has submitted it for public feedback over the following 10 days. Essentially, Harris is …

The state of New York became the first one in the United States to impose a moratorium on proof-of-work (PoW) mining, albeit only for two years. Last week, New York governor Kathy Hochul signed the moratorium into a bill, prohibiting any new mining operations that aren’t based on 100% renewable energy. The renewal of licenses would also be frozen. In eight months, the anti-mining bill made its way from the first passing through the state Assembly to the governor’s pen. The statewide development seems unlucky for New York City mayor Eric Adams, who is focused on making the city a …

The turmoil surrounding crypto exchange FTX and Sam Bankman-Fried (SBF) reaffirmed regulators’ belief about the need for stricter oversight across the crypto ecosystem. Seeking investor protection against a similar fallout, New York Attorney General (NYAG) Letitia James recommended prohibiting crypto investments in defined contribution plans and individual retirement accounts (IRAs). In a letter addressed to the members of the U.S. Congress, James requested legislation that would bar U.S. citizens from purchasing cryptocurrencies and digital assets using their funds in IRAs and defined contribution plans such as 401(k) and 457 plans. However, a survey from October 2022 showed that nearly 50% …

New York governor Kathy Hochul signed the proof-of-work (PoW) mining moratorium into law on Nov. 22, making it the first state in America to ban any PoW crypto mining activity for two years. The PoW mining moratorium will not only prohibit new mining operations but also refuse the renewal of licenses to those who are already operating in the state. Any new PoW mining operation in the state could only operate if it uses 100% renewable energy. The PoW mining bill was first passed by the state assembly in April earlier this year and later got the nod of the …

The superintendent of the New York Department of Financial Services (DFS) joined a nationwide regulatory discussion in the aftermath of the FTX collapse with a fresh take. Adrienne Harris believes that any federal crypto legislation to come should not override state regulatory regimes. During her speech under the headline “Digital asset regulation: The state perspective”, Harris proposed that lawmakers in Washington take a closer look at the New York state regulatory regime: “We would like for there to be a framework nationally that looks like what New York has, because I think it is proving itself to be a very …

New York City’s Mayor Eric Adams spoke out on Monday against a bill just one step away from effectively banning Bitcoin mining in the state for the next two years. The bill is designed to place a two-year moratorium on proof-of-work (PoW) crypto miners who do not use 100% renewable energy. At the same time, New York state’s environmental agency is investigating the effects of mining on the environment. The bill passed on June 3 in the State Assembly and now awaits Governor Kathy Hochul’s signature to become a law. Mayor Adams told Crain’s on Monday that he intends to …

Two Bitcoin miners have told Cointelegraph that if the bill banning proof-of-work (PoW) mining for two years in New York becomes law, it would end up triggering an exodus of mining companies from the state and do little to address the intended goals of the moratorium. GEM Mining CEO John Warren told Cointelegraph on Wednesday that he and other miners now view New York as an unfriendly place where they likely would not want to open up shop: “Miners won’t consider going there after the ban became part of the discussion.” Environmental sustainability has been at the heart of the …