NYAG Charges CEO of Crypto Lending Company with Fraud

The New York Attorney General ("NYAG") sued the former CEO of a cryptocurrency lending company for defrauding investors, including through misrepresentations and omissions, in violation of New York Law.

According to the NYAG's Complaint, the CEO used false and misleading representations "in interviews, blog posts, and livestreams" to induce investors to deposit billions of dollars in digital assets with his cryptocurrency lending company. The NYAG alleged that the CEO "promised investors high yield with minimal risk, assuring them that their digital assets would be as safe as money in a bank." The NYAG also alleged that the CEO failed to disclose losses to investors and failed to register with New York.

The NYAG is seeking an injunction barring the CEO from (i) engaging in any business relating to the issuance, offer or sale of securities or commodities in New York and (ii) serving as a director or officer of any company doing business in New York. NYAG is also seeking disgorgement of profits as well as damages and restitution for investors.