New York Attorney General Letitia James has reiterated her uncompromising position on regulating the cryptocurrency industry, emphasizing the need for crypto companies to adhere to established legal standards. In a pointed message posted on May 25 on her official X account, James declared, "Crypto companies must play by the same rules as everyone else. We will go after those that don’t.”

James' tenure, which began in 2018, has been marked by aggressive enforcement actions against cryptocurrency firms. Her significant achievements include a prolonged legal battle in 2019 against USDT stablecoin issuer Tether and the Bitfinex crypto exchange, culminating in an $18.5 million fine. More recently, she secured a $22 million settlement from KuCoin in December 2023 and took action against Coinseed.

Her latest warning comes on the heels of a historic $2 billion settlement with troubled crypto lender Genesis Global. After declaring Chapter 11 bankruptcy in January 2023, Genesis was ordered to return approximately $3 billion in cash and cryptocurrency to its customers, marking the largest settlement ever between New York State and a crypto company. This settlement includes the establishment of a victims fund to assist defrauded investors, benefiting 29,000 New Yorkers who had invested over $1.1 billion in Genesis through the Gemini Earn scheme.

Following the settlement, James expressed her frustration with the crypto industry’s regulatory lapses, stating, “Once again, we see the real-world consequences and detrimental losses that can happen because of a lack of oversight and regulation within the cryptocurrency industry.” The settlement also stipulated that Genesis, Gemini, and the Digital Currency Group cease operations in New York.

James' commitment to rigorous enforcement is further highlighted by her notorious case against former President Donald Trump. In March, James won a civil fraud lawsuit against Trump, his adult sons, and The Trump Organization, resulting in a $454 million judgment, including $355 million in penalties and nearly $100 million in interest.

James' consistent and forceful actions underscore her office’s role as a formidable regulator in the crypto space, ensuring that companies operate within the law and face substantial repercussions if they do not. Her ongoing efforts to protect investors and enforce compliance continue to shape the regulatory landscape of the cryptocurrency industry.