New York | Crypto

The request follows an August 2025 default judgment, with the AG also announcing nearly $6 million in settlements with four promoters. New York Attorney General Letitia James has asked a court to order defunct crypto and forex trading platform NovaTech’s founders, Cynthia and Eddy Petion, and related companies to pay $1.37 billion over its Ponzi scheme. The AG is seeking the return of about $1.13 billion in investor funds, plus $232.5 million in interest, according to a Thursday court filing. The court found the Petions and the companies liable by default in August 2025 after they failed to respond to the lawsuit. Read more

The agreement resolves a 2023 civil fraud lawsuit against the Celsius founder and permanently bars him from the cryptocurrency, securities and commodities industries. Former Celsius CEO Alex Mashinsky has been permanently barred from the cryptocurrency, securities and commodities industries under a settlement with New York Attorney General Letitia James that includes up to $35 million in conditional payments. The New York agreement, announced Friday, settles a 2023 civil lawsuit accusing Mashinsky of misleading hundreds of thousands of investors about the safety of Celsius before its collapse in 2022. Under the settlement, Mashinsky must pay New York $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government beyond assets already forfeited, and another $10 million if he does not serve his full prison sentence. Read more

Mashinsky owes New York $25 million if he fails to forfeit another $10 million, and $10 million more if he doesn't serve his full sentence.

Alex Mashinsky, already serving 12 years for fraud, settled New York’s civil case over claims he misled Celsius customers about the failed crypto lender’s safety.

The agreement will allow the two state regulators to share supervisory information, streamline licensing reviews and coordinate examinations and enforcement actions involving digital asset firms. New York and Wyoming financial regulators have signed an agreement to coordinate oversight of crypto companies operating across both states, including licensing, examinations and potential enforcement actions. The Memorandum of Understanding (MOU), announced Thursday by the New York State Department of Financial Services (NYDFS) and the Wyoming Division of Banking, applies to firms already regulated in either state and those seeking approval in both jurisdictions. Under the agreement, the regulators will share analysis and historical examination data to streamline applications, coordinate examination schedules and work toward joint examinations of companies operating in both states. Read more

New York has sued Polymarket, alleging its US prediction market is an unlicensed gambling business operating across the state. On Sept. 24, Attorney General Letitia James asked a New York state court to stop QCX LLC, which operates as Polymarket US, from offering event contracts without a state gaming license and to order restitution, disgorgement, […] The post New York sues Polymarket, seeks triple gains and $100,000 penalties over prediction markets appeared first on CryptoSlate.

The action filed by state lawmakers followed a similar lawsuit against prediction markets company Kalshi in July that alleged the platform was running an illegal gambling operation. New York Attorney General Letitia James is suing prediction markets platform Polymarket for offering contracts related to sporting events. On Thursday, New York state officials filed a lawsuit against Polymarket, alleging that the company’s prediction market event contracts violated state gambling laws. The lawsuit followed a similar action against Kalshi in July and litigation against prediction market platforms run by Coinbase and Gemini in April.  Thursday’s filing cited Polymarket’s sporting event contracts on its mobile app launched in December 2025, including its advertising practices to New Yorkers. According to the filing, state officials could also seek to block the platform to residents. Read more

One of the first towns in the US to ban Bitcoin mining for 18 months is considering another temporary moratorium extending to data centers and other crypto mining operations. The town of Plattsburgh in New York state held a public hearing to discuss a temporary land use moratorium for operations including AI data centers and crypto mining. In a Thursday hearing, Plattsburgh Mayor Wendell Hughes and the common council heard from members of the public about a law proposed to impose a short-term ban on land use related to “certain high energy computing facilities,” including cryptocurrency mining and artificial intelligence. The moratorium, if passed, would halt approvals for operations requiring 300 or more kilowatts (kW) for 12 months. As of Tuesday, reports signaled that the mayor had not approved the moratorium. The council is scheduled to hold another meeting on Sept. 17. Read more

The order escalates a jurisdictional fight over whether states may treat federally regulated event contracts as illegal gambling. The US Commodity Futures Trading Commission (CFTC) invoked its emergency authority on Tuesday, ordering prediction market Kalshi to continue operating. The CFTC said that New York’s enforcement action and request for a temporary restraining order themselves constituted a market emergency and directed Kalshi to continue operating in accordance with its normal practices and the Commodity Exchange Act’s Core Principles. New York’s requested temporary restraining order would bar Kalshi from operating a business offering contracts tied to sports, culture, elections and other events in or from New York or to people in the state. The CFTC said the order could prevent Kalshi from offering all event contracts nationwide because it is based in New York. According to the CFTC, New York is seeking at least $36 billion in compensatory damages pending an accounting. Read more

New York sued Kalshi last month in a bid to block it from operating sports-related prediction markets.

The July 31 petition also seeks restitution and three times alleged gains, while the federal merits remain unresolved. The post New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors appeared first on CryptoSlate.

The approval lets the USDC issuer offer fiduciary and custody services under New York banking law.

The New York trust charter allows Circle’s subsidiary to provide fiduciary and custody services under state banking law. Circle said Friday that the New York Department of Financial Services (NYDFS) has granted a limited purpose trust charter to its subsidiary, Circle Internet Trust Company LLC. A limited purpose trust charter is issued under New York Banking Law for institutions that do not have the general power to accept deposits or make loans like traditional banks, according to the NYDFS. Instead, charter holders may exercise fiduciary powers and conduct activities such as custodial services, investment management, corporate trust, transfer agency and securities clearance. NYDFS also notes that some applicants seek to engage in virtual currency-related activity. Read more

The CFTC asked a court to stop New York enforcing against the prediction market the day before the state filed.

The lawsuit adds to a growing clash between New York and the CFTC over whether federally regulated prediction markets are subject to state gambling laws. [Update 11:45 UTC, July 31: Adds Kalshi’s response in the sixth and seventh paragraphs.] New York has sued prediction market platform Kalshi, alleging it operates an illegal, unlicensed gambling business by offering event contracts on sports, elections and other outcomes. The lawsuit seeks to stop Kalshi’s alleged illegal gambling operation in the state, require the company to forfeit illegal gains, pay restitution to users and pay civil penalties equal to three times those gains. Read more

New York Attorney General Letitia James said the federal crypto market structure bill could restrict state regulators and urged Congress to impose stronger consumer protections on digital asset platforms. New York Attorney General Letitia James urged Congress to strengthen oversight of cryptocurrency companies, warning that proposed federal legislation could weaken states’ ability to investigate scams and hold platforms accountable. In written testimony submitted Monday to the Senate Permanent Subcommittee on Investigations, James said the Digital Asset Market Clarity Act would override state regulation of digital asset markets and shift oversight to the Commodity Futures Trading Commission. She argued that this would undermine state and local enforcement. According to the attorney general, complaints about crypto scams received by her office have tripled over the past three years, while reported losses totaled nearly $500 million over five years. Read more

New York has become the first US state to impose a statewide moratorium on large new data centers, creating an early regulatory test for Bitcoin miners that are rebuilding their businesses around artificial intelligence. On July 14, Gov. Kathy Hochul signed an executive order directing state regulators to pause incomplete permit applications for new or […] The post Bitcoin miner AI pivot hits roadblock with New York 50 MW permit freeze appeared first on CryptoSlate.

A Bitcoin address dormant for nearly 15 years moved $1.9 million in BTC as a New York lawsuit seeks ownership of thousands of inactive holdings. A dormant Bitcoin address transferred 30 BTC worth about $1.88 million for the first time in almost 15 years. Bitcoin address "1KV47" made its first outgoing transfer on Saturday since receiving 30 BTC in August 2011, blockchain data shared by Galaxy Research shows. The address is among 39,069 listed in a New York lawsuit filed by "Noah Doe" and two Wyoming-based companies seeking ownership of dormant Bitcoin holdings. The case could test how inactive cryptocurrency holdings are treated under the state's lost-property law. Read more

A defendant who owns one of the dormant Bitcoin wallets filed to dismiss the New York case, which seeks ownership of $229 billion worth of Bitcoin considered lost. A pseudonymous defendant has moved to dismiss a New York lawsuit seeking ownership of 39,069 dormant Bitcoin addresses, arguing that Bitcoin addresses are merely data strings that cannot be sued. The defendant, identifying themselves as “John Doe 33,” filed a notice of appearance and motion to dismiss on Thursday, claiming they control one of the dormant wallets named in the lawsuit. According to the motion, the lawsuit is legally defective because Bitcoin address strings are neither persons nor legal entities subject to the court's jurisdiction. The filing argues that a public Bitcoin address cannot itself be “found” under New York's lost-property law because it has always been publicly visible on the blockchain. Read more

A pseudonymous respondent has appeared in New York court to challenge a lawsuit seeking control of over $200 billion worth of long-dormant coins tied to the network’s earliest days, including those linked to Satoshi Nakamoto, Bitcoin's pseudonymous founder. The respondent, using the name John Doe 33, filed a notice of appearance on June 30 in […] The post Mystery owner challenges the $200B ‘lost’ Satoshi Bitcoin claim in New York court appeared first on CryptoSlate.