New York Attorney General issues warning over crypto investment risks

Letitia James, a New York Attorney General has reportedly warned investors against “risky cryptocurrency investments” citing the asset fluctuations.

As an efforts to ban Proof-of-Work (PoW) crypto mining continue in New York, the Attorney General reminded investors about the risks of investing in crypto-assets as a whole.

In a recent investor warning issued on Thursday, Letitia James the New York Attorney General said investors in Crypto had “billions in losses.” James points out that even digital assets traded on well-known and very reputable exchanges have chances of collapsing anytime. Sighting these reasons, the Attorney General was convinced that crypto investments would create “more pain than profit” for its investors.

In addition to this, James urged New Yorkers to be more careful when keeping their money in crypto. Because of its volatile nature, these investments could at times turn out to be worrying rather than lucky, and then it is soon turning into a source of anxiety rather than fortune as the ,”attorney said.

The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions.
 
New Yorkers should be cautious and think twice before putting their hard-earned money into this unstable market.

— NY AG James (@NewYorkStateAG) June 2, 2022

The recently  published warning highlights several factors that discourage investors, such as market unpredictability, difficulties in obtaining cash, high transaction costs, and volatility of certain stable currencies. The announcement also reminded investors that many digital currencies are out of control and are not regulated by anyone.

This warning came as the New York State Senate passed a bill banning PoW mining in the state. If Governor Kathy Hochul approves of the bill, any new mining activities in the region will be banned and those licensed to operate will not be able to renew their permits anymore.

At the same time on the other hand, Kenyan energy company KenGen tapped Bitcoin (BTC) miners to buy their excessively available renewable energy. According to an executive from the company, there is plenty of space in the country and they are eager to welcome and onboard the crypto miners.

While the bear market continues, BTC mining revenue is also declining with the same. On 24 May, daily mining revenue hit an eleven-month low of $22.43 million. This is half of the $40.57 million mining revenue that was recorded in early May.

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