NYAG is announcing further investigations into unregistered crypto lending platforms, and Letitia James has even ordered those platforms to be closed.

New York-NYAG Attorney General Letitia James announces further investigations into unregistered crypto lending platforms and urges all platforms to cease operations while soliciting three more for information on all of their activities for the office. James said:

“Cryptocurrency platforms, like all others, are subject to the law, which is why we are currently instructing two crypto companies to shut down and forcing three others to answer questions. Ask immediately.”

The New York attorney general failed to disclose the crypto lenders and the names of the companies, but one of the letters published is filename “Nexo Letter” while the other is called “Celsius Letter” are two of the companies targeted by NYAG . At the moment, it remains unclear whether these crypto lenders are actually being investigated. A Nexo spokesperson said:

“Nexo doesn’t sell its monetization and exchange products in New York, so there is no point getting a C&D for something we don’t sell in NY anyway. But we’re going to join NY AG as it’s a clear case of mixing up email recipients. We use IP-based geoblocking. “

NYAG said that “the virtual currency loan products in question that are in action today promise investors a return and claim to deliver those returns, trade in virtual assets, or lend additional virtual assets, among other things.”

NYAG says the platform offers accounts with interest and is a security under the New York Martin Act. The law, passed in 1921, gives NYAG extensive powers to investigate allegations of securities fraud. The latest announcement shows that these companies offered securities without first registering with the Attorney General’s office.

Both Celsius and BlockFi, the most popular debt services, have been hit hard by the recent regulatory raids. The Kentucky Financial Services Authority banned C interest accounts from being sold in the state. State regulators declare Celsius interest accounts to be securities products and must be registered as such. Alabama and New Jersey also filed cease and desist orders against Celsius, while the Texas State Securities Commission ordered Celsius to hold an administrative hearing in February. BlockFi is also facing challenges with regulators in Vermont, Texas and Kentucky who have all filed cease and desist orders against the company. Alabama has also issued an official order against BlockFi.

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