Crypto Probe ‘Continues’ Despite New York AG’s Resignation

The sudden resignation of New York Attorney General Eric Schneiderman on Monday night doesn’t appear to have impacted that office’s inquiry into more than a dozen cryptocurrency exchanges.

CoinDesk asked the Attorney General’s Office if the crypto exchange inquiry would continue in light of Schneiderman’s exit. In an email, press secretary Amy Spitalnick wrote: “Our office’s work continues.”

Last month, the New York Attorney General’s Office launched a fact-finding inquiry into 13 cryptocurrency exchanges. The exchanges were sent detailed questionnaires, which included questions about their business models, operations, funding, trading protocols, leadership and business relationships.

Schneiderman’s abrupt resignation, effective at the close of business Tuesday, came hours after the publication of an article in the New Yorker.

In the report, four women alleged that Schneiderman had “repeatedly hit them, often after drinking, frequently in bed and never with their consent.” The women, two of whom spoke on the record, were all former romantic partners of Schneiderman.

CoinDesk contacted several of these exchanges after the inquiry was first announced, the majority of which welcomed the inquiry and praised Schneiderman’s efforts to increase transparency in the industry.

Coinbase, one of the affected exchanges, published a version of its reply to the questionnaire, though the full response has not been released due to the confidential information it contains.

One exchange, however, has refused to cooperate with the AG office’s inquiry.

Jesse Powell, CEO of Kraken, told CoinDesk: “Kraken’s BitLicense-prompted exit from New York in 2015 pays another dividend today,” referring to a controversial licensure framework. Powell’s complete statement can be read here.

New York City image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Source