Should Eric Adams accept his first three paychecks in Bitcoin, he would likely acquire more than 1 BTC following the price drop to $42,948. 1716 Total views
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Newly sworn-in New York City Mayor Eric Adams is already using his influence to speak  publicly about buying the recent Bitcoin dip. In a Thursday interview with CNBC’s Squawk Box, Adams said he had not yet received his first paycheck as the mayor of New York City, but reiterated his aim to make the city a Bitcoin ( BTC ) and crypto hub. When co-anchor Andrew Ross Sorkin pointed out that the price of the crypto asset has “come down” — dipping as low as $43,000 early Thursday — the NYC mayor seemed to be undeterred. "Sometimes the best time to buy is when things go down, so when they go back up, you made a good profit,” said Adams. “We need to use the technology of blockchain, Bitcoin, of all other forms of technology. I want New York City to be the center of that technology.”
"Sometimes the best time to buy is when things go down," says @NYCMayor on #bitcoin . "I'm going to take my first three paychecks in #bitcoin . I haven't received my first check yet." pic.twitter.com/dqGkVYxOKg
Adams, who has been in office five full days following a November election win , is replacing Bill de Blasio as the mayor of New York City. During his campaign, Adams  pledged to make New York City a tech hub that will be ”the center of cybersecurity, the center of self-driving cars, drones, the center of Bitcoins,” beating out crypto-friendly businessman Andrew Yang to become the Democratic party nominee. As part of his efforts to promote crypto and blockchain technology — or perhaps inspired by a friendly feud with Miami Mayor Francis Suarez — Adams announced following the election that he planned to take his first three paychecks in BTC. Assuming the NYC mayor accepts a base salary of $258,750, his monthly paychecks would be roughly $21,562 each, a total of 1.51 BTC at a price of $42,948. New York state is often the center of media attention related to regulation and enforcement for crypto firms in the United States. The New York Attorney General’s office was responsible for the settlement of the case against Bitfinex and Tether, which in February agreed to pay $18.5 million in damages, and ordered  Coinseed to close its doors after the firm allegedly defrauded investors out of more than $1 million.

NYC mayor getting paid in Bitcoin suggests buying the dip

Adams beat out Republican Curtis Sliwa — also a pro-crypto candidate — to become the next mayor of New York City with 72.8% of the vote. 1887 Total views
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Democrat Eric Adams, who said he planned to make New York City “the center of Bitcoins” if elected mayor, has won his race against Republican Curtis Sliwa. Following the Nov. 2 Election Day results, Adams will be replacing Bill de Blasio as the mayor of New York City, defeating Sliwa and other candidates with 72.8% of the vote. He is expected to take office on Jan. 1. It's official -- our five-borough, knock-every-door, reach-every-voter campaign was successful: We have won the race for Mayor of New York City! This is my dream come true, and I couldn’t be more proud to represent the City that we all love as your Mayor-elect
During his mayoral campaign, Adams pledged to make New York City a tech hub that will be ”the center of cybersecurity, the center of self-driving cars, drones, the center of Bitcoins.” He beat out crypto-friendly businessman Andrew Yang to become the Democratic party nominee in June. Many jurisdictions in the United States held elections for local and state governments yesterday, putting forth some candidates who have previously advocated for pro-crypto legislation and policy. In Miami, Francis Suarez won re-election — he has served as mayor since 2017 — with 78.7% of the vote. New York state is often the center of media attention related to regulation and enforcement for crypto firms in the United States. The New York Attorney General’s office was responsible for a settlement case from Bitfinex and Tether, which in February agreed to pay $18.5 million in damages, as well as ordering Coinseed to close its doors after the firm allegedly defrauded investors out of more than $1 million. While major federal elections in the United States may sometimes affect the crypto market, many senators and state representatives will not have their seats challenged until 2022 at the earliest. Pro-crypto U.S. lawmakers in cities and states who did not face a re-election battle yesterday included Mayor Jayson Stewart of Cool Valley, Missouri. In August, Stewart proposed giving away more than $1 million in Bitcoin ( BTC ) to the city’s roughly 1,500 residents.

Crypto at the polls: Eric Adams wins NYC mayoral race

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On October 18, New York Attorney General Letitia James issued cease-and-desist letters directing two virtual currency lending platforms to cease "unregistered and unlawful" lending activities in New York State within 10 days, while also ordering three additional digital currency platforms to provide information about their activities and products within the state by November 1. James' office issued a press release on the same day, announcing the actions and attaching copies of the letters with recipient names redacted. The orders from the New York attorney general's office (OAG) are just the latest in a series of actions by several state regulatory bodies against virtual currency lending firms, including those dealing specifically in cryptocurrency (a subset of virtual currency that uses cryptography to validate and secure transactions). As discussed in our October 7 alert , several other states recently issued orders against the New Jersey-based cryptocurrency company Celsius Network LLC (Celsius). Specifically, Alabama, Kentucky, New Jersey, and Texas alleged that Celsius unlawfully offered unregistered securities in the form of high interest-bearing accounts used to fund its lending operations and proprietary trading. These same states also filed actions against BlockFi, another New Jersey-based cryptocurrency firm, earlier this year. New York Alleges Violations of the Martin Act
In the two cease-and-desist letters, New York alleges that under the state's General Business Law Article 23-A (the "Martin Act), certain interest-bearing products offered by the unnamed virtual currency firms are considered to be securities because they promise a rate of return to investors and deliver that return through the company trading with, or lending, the virtual assets. New York further alleges that the currency lending companies are serving as brokers, dealers, or salespeople because their interest-bearing products are openly offered to, and utilized by, New York purchasers. Finally, New York alleges that these companies have not registered with the office of the attorney general and/or other applicable governmental authorities as required under the Martin Act. The Martin Act, initially passed in 1921, grants the attorney general broad authority to investigate and prosecute cases of securities fraud. At the same time that the cease-and-desist letters were sent, the attorney general's office also issued written requests for information to three unnamed companies regarding their product offerings. Without alleging any wrongdoing, New York asked these companies to produce information sufficient to demonstrate compliance with the following New York laws: (1) the Martin Act's registration requirement, (2) the prohibition of fraudulent activity in connection with the purchase of sale of securities and commodities, (3) and the prohibition of repeated or persistent fraudulent or illegal activity in the conduction of business. Specifically, New York requested descriptions of all virtual currencies available for the companies' lending products; detailed information about any virtual currency deposited with the platform; information about "unverified accounts" or accounts from which a user can deposit virtual currency onto the platform using solely an email address or virtual wallet; and whether the platforms or lending products accept "tethers," a so-called "stablecoin" issued by the virtual currency firm Tether Limited (Tether). Along with Bitfinex, another virtual currency trading platform, Tether was the subject of an investigation by the New York attorney general's office earlier this year. In the press release announcing the issuance of the letters, James made clear to other companies dealing in virtual currencies that her office is prepared to actively enforce New York's investor protection laws. "Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately," said Attorney General James. "My office is responsible for ensuring industry players do not take advantage of unsuspecting investors. We've already taken action against a number of crypto platforms and coins that engaged in fraud or that illegally operated in New York. Today's actions build on that work and send a message that we will not hesitate to take whatever actions are necessary against any company that thinks they are above the law." Although New York redacted the names of the companies in the copies of the letters provided publicly, cryptocurrency lending firm Nexo Financial LLC since has confirmed that it received one of the OAG cease-and-desist letters, while Celsius confirmed that it received a request for information. Prior Enforcement Actions
New York has aggressively pursued virtual currency businesses through several enforcement actions brought by its Investor Protection Bureau in recent years. The October 18 letters follow closely on the office's September 13 judgment against virtual currency trading platform Coinseed, which put an end to Coinseed's operations and appointed a permanent receiver to manage investor funds. In February 2021, James' office reached an agreement with Bitfinex, Tether, and related entities that required the companies to cease trading activities in New York and to pay $18.5 million in penalties, as well as take several actions designed to increase transparency of the companies' operations. In addition to enforcement actions and settlements, the OAG has made very clear its intent to pursue enforcement against virtual currency businesses that the office perceives as potentially noncompliant. In March 2021, James' office issued an industry alert that highlighted "significant noncompliance" with registration requirements and provided notice that the OAG would act on its authority under the Martin Act to enjoin fraudulent practices in service of investor and consumer protection. As the alert notes, New York courts have previously recognized some virtual currencies as commodities under the Martin Act, [1] providing the attorney general with sufficient legal backing to conduct investigations and bring actions against companies trading virtual currencies in the state. Federal and State Regulatory Landscape
State attorneys general are hardly the only regulators looking to assert their authority in the virtual currency arena. As we also discussed in our October 7 alert , the well-known cryptocurrency exchange Coinbase announced in late September that it had received a Wells Notice from the Securities and Exchange Commission (SEC). In addition, various SEC officials have publicly expressed significant concerns regarding cryptocurrency products. As we concluded then, these prominent developments suggest that all digital asset products — particularly those tied to interest-bearing accounts — will be subject to increased regulatory scrutiny and enforcement at the federal and the state level. In the meantime, state regulators are taking advantage of the lack of a comprehensive federal regulatory framework to issue challenges against virtual currency lending products. New York's recent actions further emphasize increased regulatory scrutiny by the states on the virtual currency industry, and serve as a warning to all virtual currency businesses that they should be prepared for information requests and other enforcement actions on the horizon. [1] James v. iFinex, 185 A.D.3d 22, 28 (1st Dep't 2020).

New York Doubles Down on Regulatory Scrutiny of Crypto Lending Firms

October 18, 2021
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October 18 (Businesshala) – Two cryptocurrency lending platforms in New York were told on Monday by the state’s attorney general to cease activities and three other platforms were directed to provide information about their trading. - Advertisement -
The move comes weeks after New York Attorney General Letitia James won a court order to shut down cryptocurrency exchange Coinseed. - Advertisement -
In a revised version of a letter written Monday, James said the attorney general’s office was “in possession of evidence of unlawfully selling or offering for sale securities and/or commodities”. Against the backdrop of rising tensions between the crypto industry and regulators around the world, regulators in the US are examining a world that has hitherto existed in a regulatory gray area. - Advertisement -
James sued Coinseed to shut down in February for allegedly defrauding thousands of investors, including charging hidden trading fees and selling “worthless” digital tokens. state attorney general warning issued a warning to investors about the “extreme risk” when investing in cryptocurrencies and to facilitators in trading virtual currencies. “Cryptocurrency platforms must comply with the law like everyone else, which is why we are now forcing two crypto companies to close and three more to answer questions immediately,” James said on Monday. Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shaunak Dasgupta
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New York directs two cryptocurrency lending platforms to cease activity

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Vermont Attorney General Sues Fossil Fuel Companies over Alleged Deceptive Marketing Tactics
Vermont AG T.J. Donovan filed a lawsuit against fossil fuel companies Exxon Mobil Corporation, Shell Oil Company, Sunoco LP, CITGO Petroleum Corporation, and related companies over allegations that they used deceptive and unfair practices in marketing fossil fuels in violation of Vermont’s Consumer Protection Act. The complaint alleges, among other things, that the companies knew about the potential climate change effects of fossil fuel use since the 1960s, but continued to promote their products and downplay their climate effects, and that the companies engaged in deceptive “greenwashing” campaigns by falsely portraying themselves as helping the environment. The complaint, which seeks injunctive relief, disgorgement, civil penalties, and attorneys’ fees and costs, is the latest such consumer protection suit against the fossil fuel industry filed by an AG, including ones brought by the AGs of Minnesota and Delaware, among other states. Pool of Republican Candidates in Arizona’s 2022 Attorney General Race Expands
Dawn Grove , VP and corporate counsel at Karsten Manufacturing Company (parent company of golf club company PING), has announced her candidacy for the Republican nomination in the 2022 election for Arizona AG. As previously reported , the 2022 field of Republican candidates for the open AG seat is crowded and includes former prosecutor and Border Patrol section chief for the U.S. Attorney’s Office Lacy Cooper , farmer and private-practice attorney Tiffany Shedd , and former Arizona Supreme Court Justice Andrew Gould . Incumbent Republican AG Mark Brnovich is term-limited from seeking reelection and is running for the U.S. Senate against Democrat Mark Kelly. To read more election news and insights, visit our Meet the State AGs
StubHub Agrees to Honor Money-Back Guarantee for COVID-19-Related Event Cancellations
A bipartisan group of 11 AGs, led by Maryland AG Brian Frosh , reached a settlement with online ticket reseller StubHub, Inc. to resolve allegations that StubHub violated state consumer protection laws by refusing to issue refunds to ticketholders for events cancelled due to the COVID-19 pandemic. According to the AGs, StubHub’s advertised guarantee offered consumers full refunds of the ticket purchase price and fees if their events were cancelled, but after the mass cancellation of events in March 2020 due to COVID-19, StubHub allegedly stopped honoring its refund guarantee and offered to credit customers’ accounts instead. In May 2021, after the commencement of the AGs’ investigation, StubHub reversed its policy and offered to issue the guaranteed refunds to affected customers. Under the terms of the Maryland consent order , which is substantially similar to the settlements with other investigating states, StubHub will pay $424,250 in civil penalties unless it issues full refunds to affected consumers; must honor its refund policies and not change refund policies for already-purchased tickets unless the purchaser consents to the change; and must submit a compliance report detailing its refunding efforts and compliance with the consent order, among other things. FTC Unveils New Compulsory Processes in Eight Key Enforcement Areas
The Federal Trade Commission (“FTC”) issued resolutions to increase the efficiency of FTC investigations into competition or consumer protection violations under the FTC Act in eight priority enforcement areas. The resolutions direct the use of all available compulsory processes—such as civil investigative demands and subpoenas—to investigate potential FTC Act violations in the following enforcement areas: (1) acts or practices affecting U.S. Armed Forces service members and veterans; (2) acts or practices affecting children; (3) bias in algorithms and biometrics; (4) deceptive and manipulative conduct on the internet; (5) repair restrictions; (6) abuse of intellectual property; (7) common directors and officers and common ownership; and (8) monopolization offenses. The Acting Directors of the Bureau of Competition and the Bureau of Consumer Protection stated their intention to use these resolutions aggressively to combat harmful practices, particularly those targeting children, veterans, and marginalized communities. Following an earlier announcement on other priority enforcement areas in July 2021, this is the second time since Lina Khan has become Chairwoman of the FTC that the agency has announced several such resolutions at once. CFPB: Income Share Agreements Are Student Loans and Must Follow Student Loan Rules
The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with private student loan company Better Future Forward Inc. and related companies (collectively, “Better Future”) over allegedly deceptive practices in originating and servicing private student loans in the form of income share agreements (“ISAs”) in violation of the Dodd-Frank Consumer Financial Protection Act, the Truth in Lending Act (“TILA”), and TILA-implementing Regulation Z. According to the CFPB, Better Future allegedly misrepresented its ISAs by claiming that ISAs were not loans and did not create debt, failed to provide the required student loan disclosures, and subjected borrowers to illegal fees and penalties for early repayment or prepayment of their loans, among other things. Under the terms of the consent order , Better Future agreed to stop misrepresenting its ISAs, provide all legally-required disclosures to potential borrowers, eliminate early payment or prepayment penalties and fees, and stop objecting to the discharge of borrowers’ ISAs in bankruptcy. Better Future also agreed to submit a compliance plan to the CFPB that would show how Better Future intends to comply with all applicable federal consumer financial protection laws and regulations, among other things. New York Attorney General Ramps Up Securities Enforcement of Cryptocurrency Companies
New York AG Letitia James reached a settlement with Chinese-language news and social media company GTV Media Group and its parent company Saraca Media Group, Inc. (collectively, “GTV”) to resolve allegations that GTV sold stock and cryptocurrencies without registering as securities dealers and/or commodities broker-dealers in violation of the state’s Martin Act. According to the AG’s office, GTV allegedly conducted an offer and sale of its stock, raising hundreds of millions of dollars from over 1,200 investors, and pre-sold more than $30 million in two digital instruments that were promoted as cryptocurrencies, without registering as securities dealers and/or commodities broker-dealers in New York state. Under the assurance of discontinuance , GTV will pay nearly $480 million to New York, but its monetary obligation will be deemed satisfied upon payment of that amount into a special fund in accordance with GTV’s contemporaneous $539 million settlement with the U.S. Securities and Exchange Commission related to its alleged unregistered offering of GTV common stock. AG James also obtained a judgment against cryptocurrency trading platform Coinseed, Inc. and related individuals (collectively “Coinseed”), permanently stopping its unauthorized activities as an unregistered commodity broker-dealer, and appointing a receiver to safeguard investors’ funds, among other things. As previously reported , AG James sued Coinseed in February 2021 over allegations that it violated the Martin Act by raising funds in an unregistered securities offering, and that it defrauded and deceived investors with false claims about its staff’s expertise and experience.

The State AG Report - Volume 7, Issue 37

Companies in this collection build, apply, and analyze blockchain and cryptocurrency technologies for business or consumer use cases. Various industries include financial services, trade finance, supply chain, enterprise tech, consumer and retail, and healthcare.

Blockchain

CoinSeed specializes in designing and implementing high power and optimally efficient ASIC based Bitcoin mining infrastructures for the purpose of generating solid return on investment for limited partners.

Name	Del Davaasambuu
Work History
Title	Chief Executive Officer
Status	Current

Wells Fargo Success Story

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CoinSeed

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