On April 29, New York AG Letitia James announced an Assurance of Discontinuance with a cryptocurrency platform resolving allegations that the platform promoted a third-party crypto lending product in violation of the Martin Act and New York Executive Law § 63(12). The AG alleged that the platform advertised the lending product to users as a way to earn interest on digital assets, while failing to register and omitting material information about the product’s risks.

Specifically, the Assurance alleges that the platform:

• Offered unregistered securities. The lending agreements were alleged to be investment contracts, and the platform allegedly facilitated those transactions without required registration.
• Made misleading marketing…