New York | Crypto

New York AG Letitia James secured a $5 million settlement from Uphold for promoting CredEarn, a crypto savings product that misled users about its risks. New York Attorney General Letitia James has secured more than $5 million from cryptocurrency platform Uphold over its role in promoting a fraudulent investment product. The settlement centers around Uphold’s promotion of CredEarn, a product offered by Cred, LLC and its CEO Daniel Schatt. Between January 2019 and October 2020, the platform marketed CredEarn to users on its platform and mobile app as a safe, reliable savings product with attractive annual interest payments. However, Uphold didn’t tell customers that Cred was generating those returns by making microloans to low-income video game players in China, who are typically borrowers with no credit histories and no access to traditional financial institutions, the Attorney General’s office said in an announcement.   Read more

The CFTC has filed suit to block New York from enforcing gambling laws on prediction platforms, arguing federal regulators have sole authority over event-based contracts. The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against New York to stop the state from applying its gambling laws to federally regulated prediction market platforms, escalating a growing clash over who has authority to oversee these products. In a complaint lodged in the US District Court for the Southern District of New York, the CFTC argued that federal law gives it exclusive authority over these markets, asking the court for a declaratory judgment and a permanent injunction against New York’s enforcement actions. “CFTC-registered exchanges have faced an onslaught of state lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets,” CFTC Chair Michael Selig said. Read more

MoonPay has expanded its virtual accounts product to New York, allowing businesses to convert fiat into stablecoins and settle funds without prefunding across jurisdictions. MoonPay has launched fiat-to-stablecoin virtual accounts in New York, allowing businesses to convert incoming funds from bank rails such as ACH and SWIFT into stablecoins and settle them directly to non-custodial wallets through a single API. The product is underpinned by technology provider Iron and allows platforms to issue named, dedicated accounts that receive fiat and automatically convert it into stablecoins, enabling payment, trading and treasury flows without relying on prefunded balances or multiple intermediaries. The rollout in New York follows MoonPay’s acquisition of Iron in 2025 and builds on integrations with platforms including Deel and Paysafe, extending its stablecoin infrastructure across payroll and payments networks, according to Thursday's announcement. Read more

Top prediction market platforms, including Kalshi and Polymarket, are rushing to offer highly leveraged crypto derivatives at the exact moment state and federal authorities are clashing in court over whether the industry’s core products constitute illegal betting or legitimate financial instruments. Over the past year, these companies have gained national prominence by facilitating wagers on […] The post New York demands $3.4B in crypto fines: Inside the fight to turn prediction apps into nonstop leverage casinos appeared first on CryptoSlate.

Coinbase legal chief Paul Grewal says the company removed New York’s prediction markets lawsuit to federal court, setting up a sharper fight over CFTC authority and state gambling laws. Coinbase’s chief legal officer, Paul Grewal, said Wednesday that the company had removed New York Attorney General Letitia James’ prediction markets lawsuit from state court to federal court, arguing that the case turns on disputed questions of federal law over how event contracts are regulated. The move escalates a legal fight that could help define whether prediction markets fall under federal commodities regulation and the scope of the US Commodities and Futures Trading Commission’s (CFTC) or state gambling laws, with broader implications for the oversight of platforms like Coinbase and Gemini. “We have removed this action to federal court,” wrote Grewal in a Wednesday X post, adding that New York’s claims raise “disputed and substantial questions of federal law” and are subject to “complete preemption.” Read more

New York has become the latest state to argue that prediction market contracts touching on sports and entertainment violate state gambling laws.

Attorney General Letitia James alleged that Coinbase and Gemini ran unlicensed markets, adding pressure on crypto companies as states move to regulate event-based trading platforms. New York's attorney general has filed lawsuits against crypto exchange operators Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws, according to court records cited by Reuters. Copies of the complaints show the state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their markets, Reuters reported.  “Gambling by another name is still gambling, ​and it ​is not ⁠exempt from regulation under our state laws and Constitution,” Attorney General Letitia James said in a statement. Read more

New York users gain access to Strike’s Bitcoin brokerage, recurring buys and paycheck-to-Bitcoin services after the NYDFS licensing approvals. Payments company Strike received a virtual currency license and a money transmitter license (MTL) from the New York State Department of Financial Services (NYDFS), allowing the company to offer its Bitcoin services to residents and businesses in New York. Granted in February, the approvals authorize Zap Solutions, Inc., which does business as Strike, to operate under New York’s digital asset regulatory framework, the company said in a Thursday release. New York residents can now use Strike to buy and sell Bitcoin (BTC), set recurring or price-targeted purchases and convert direct-deposited paychecks into Bitcoin. The platform also allows users to pay bills from Bitcoin balances and withdraw funds to self-custody wallets. Read more

A federal judge in New York dismissed fraud claims against Uniswap for the second time this month, and the decision carries implications far beyond the cryptocurrency industry. At stake: whether platforms that provide neutral infrastructure can be held liable when bad actors exploit those tools to commit fraud. Judge Katherine Polk Failla's ruling applies a […] The post Uniswap wins again in New York court as judge draws new line on DeFi liability appeared first on CryptoSlate.

The ruling keeps pre‑2019 investor claims in open court and rejects Binance’s bid to send the dispute to private arbitration in Singapore. A United States federal judge ruled that Binance cannot force a group of US customers to arbitrate claims over losses on crypto tokens they bought on its global platform before Feb. 20, 2019, keeping a major class action in open court. The decision on Thursday by District Judge Andrew Carter Jr. in the Southern District of New York held that those claims were not bound by Binance.com’s 2019 arbitration clause because users lacked sufficient notice when the company unilaterally shifted its terms of use away from the 2017 version, which contained no arbitration or class action waiver provisions. According to the judge, Binance relied on a general change‑of‑terms clause and the posting of updated 2019 terms on its website, and there was no evidence that the exchange provided any individual notice or formally “announced” the new arbitration provision to users. Read more

MetaMask Card goes live in the US, with first-time availability across 49 states, including New York, following initial pilots over the past two years. Self-custodial cryptocurrency wallet MetaMask is rolling out its Mastercard-enabled spending card in the United States, with first-time availability in New York. MetaMask parent company Consensys on Thursday announced the general availability of the MetaMask Card across the US following initial pilots in 2025 and 2024. With the US launch, MetaMask Card joins existing availability in Argentina, Brazil, Canada, European Economic Area countries, Mexico, Switzerland and the United Kingdom, with additional markets to follow, the company said in an announcement shared with Cointelegraph. Read more

Ledger is working with Goldman Sachs, Jefferies and Barclays to list in New York, potentially tripling its last valuation, the Financial Times reported.

The regulatory approval followed the payments company obtaining a BitLicense from the NYDFS in June, making it one of a handful of crypto companies to have both. Cryptocurrency payments company MoonPay said it would expand its offering of regulated services after being granted a trust charter by New York’s Department of Financial Services (NYDFS). In a Tuesday notice, MoonPay said New York’s financial regulator had granted the company a trust charter. The regulatory approval will allow the payments company to provide crypto custody and over-the-counter trading services in New York. MoonPay co-founder and CEO Ivan Soto-Wright said the approval would allow the company to “deepen relationships with global financial institutions,” and expand its existing regulated services. The payments company secured a BitLicense from the NYDFS in June. Read more

A former lawyer for Coinbase, Khurram Dara, has thrown his hat in the race for New York attorney general. But incumbent Letitia James has a strong foothold, and a Republican hasn't won in 30 years. A former policy lawyer at crypto exchange Coinbase is running for attorney general of New York. His bid to represent the crypto industry’s interests runs against a strong Democratic bias and concerns over industry influence in policymaking. Khurram Dara, who also worked as a regulatory and policy principal at Bain Capital Crypto, announced his campaign on Nov. 21. In a video accompanying his post on X, Dara said he wants to stop the supposed “lawfare” that current Attorney General (AG) Letitia James is waging against the crypto industry. Dara said that the reportedly unfair treatment of the industry drives up costs for New Yorkers. New York City Mayor-elect Zohran Mamdani recently won his election with a focus on cost-of-living issues. Read more

Zohran Mamdani’s win has put New York’s crypto sector on edge, raising questions about how a mayor critical of both Wall Street and digital-asset wealth will steer the city. On Nov. 4, the 34-year-old Democrat defeated former New York Governor Andrew Cuomo in a race that had gripped prediction markets for months. Mamdani’s ascent is […] The post How Zohran Mamdani’s victory impacts New York’s crypto future appeared first on CryptoSlate.

Bullish’s crypto trading services are now on offer across 20 US states after receiving regulatory approval from New York’s financial regulator last month. Institutionally-focused crypto trading platform Bullish has launched in 20 US states after receiving a BitLicense and a money transmission license from the New York financial services regulator last month. Bullish debuted spot trading with two institutional clients on its first day: crypto infrastructure firm BitGo and crypto brokerage Nonco, it said on Wednesday. Some of the largest states where trading on Bullish is now accessible include California, Florida, Arizona, Washington, DC, and New York, where the New York State Department of Financial Services approved Bullish’s BitLicense and money transmission license.  Read more

New York’s top financial regulator advised banks to expand their use of blockchain analytics when handling virtual currency. The regulator noted in a Sept. 17 industry letter sent to state-chartered banks and foreign branches operating in New York that the tools can help institutions better manage risks related to money laundering, sanctions violations, and other […] The post New York regulator urges banks to harness blockchain analytics for crypto risks appeared first on CryptoSlate.

The New York Department of Financial Services (NYDFS) has imposed a $48.5 million penalty on Paxos as part of its enforcement action against the stablecoin issuer, according to an Aug. 7 announcement. The settlement includes a $26.5 million civil monetary fine and mandates Paxos to spend an additional $22 million over three years to strengthen […] The post New York fines Paxos $48.5M over Binance-linked compliance lapses appeared first on CryptoSlate.

The New York Department of Financial Services (NYDFS) said the fine was due to a lack of anti-money laundering oversight. Update Aug. 7, 21:06 UTC: This article has been updated to add a response from Paxos. The New York Department of Financial Services (NYDFS) reached a $48.5 million settlement with crypto infrastructure company Paxos over its partnership with Binance and alleged failure to uphold sufficient anti-money laundering provisions. Paxos agreed to pay New York state a $26.5 million penalty and will spend an additional $22 million to overhaul its compliance program, according to Thursday’s announcement.  Read more

Zohran Mamdani has made waves after his primary election victory, but what would he mean for the crypto industry in NYC? Zohran Mamdani won the New York mayoral primary election on June 24, which has since caused a stir among the crypto industry’s upper crust. Mamdani will face off against incumbent Mayor Eric Adams in November, and it’s clear that many in the crypto industry are uneasy about the prospect of a Mamdani victory. Executives and pro-crypto government officials alike have decried his policy proposals, with critics equating his left-leaning policies to Soviet collectivism. Mamdani laid out many specific policy positions, several of which were further left than the Democratic Party norm, but he has remained relatively silent on cryptocurrency. His opponent, Adams, in contrast, is promoting it at great length. Read more