NY State Attorney General’s concern on growing cryptocurrency risks prompts Chief’s appointment 20788
Ashmita Dutta
Aug 10, 2018 at 6:58 PM

The New York State Attorney General, Barbara D. Underwood has appointed Cynthia Hanawalt as the Chief to probe cryptocurrency trading risks. In the new designation of Investor Protection Bureau Chief, Cynthia's primary role would involve investigation of Ponzi schemes along with increasing risks of cryptocurrency in the market scenario.

Statement of the New Investor Protection Bureau Chief

The investigation department is dedicated to safeguard and fight for the financial security of the New Yorkers. In this occasion, Cynthia has expressed her gratitude stating, “I am honored to accept this appointment from Attorney General Underwood.  Amidst federal retreat and Congressional attacks on the state laws protecting our citizens, there could not be a more important moment for energetic state securities work.

However, the New York State Attorney General has complete faith in the potential of Cynthia as the Chief. She believes that the latter would continue to give protection to the investors and maintain the integrity of the market. Cynthia is already quite popular in the investigation department since she successfully recovered an amount of $772 million belonging to the investors of New York.

See also: Cryptocurrency trading blooms in Thai market; 20 exchange seek licenses

The Attorney General is highly concerned with the transparency of the crypto exchange for which she previously conducted investigations and inquiry. The fundamental purpose of the investigation was to make the cryptocurrency exchanges accountable for their activities on the platform.

The rise of popularity of cryptocurrencies including Bitcoin [BTC], Ethereum [ETC] and others triggered Barbara to carry out inquiry. Coinbase, Huobi, Kraken, Bittrex, Gemini, Binance and Bitfinex have been among the significant crypto exchanges to receive the letter of inquiry.

See also: Cryptocurrency experts warn against panic selling 

Information regarding basic operation, internal controls, trading policies, outrages, cases of money laundering were to be provided for investigative purposes. The procedure also required data on ownership, protection to customer funds against risks and suspension of trading. Apart from Kraken, all other cryptocurrency exchanges acted in compliance with the inquiry, whereas, Kraken has expressed its repercussion to the investigation.

Image via Shutterstock

Join our Telegram group