New York Attorney General Letitia James has issued a warning to highlight the risks of cryptocurrencies.
James noted that the crypto money market has experienced a major correction, noting that new projects are more affected.
James warned that cryptocurrencies can bring “more pain than gain.”
The Attorney General cited volatility, theft and fraud among the main risks in the crypto industry.
The lawyer and politician also said that cryptocurrency exchanges tend to stop trading due to technical difficulties, so investors may have a hard time turning their investments into cash during a major market crash.
Additionally, he added that purchasing cryptocurrencies can bring high transaction fees and hidden trading costs.
Although James did not directly mention the Terra project, he also targeted stablecoins. He stated that these cryptocurrencies are not stable.
Bitcoin is trading at $30,287 at the time of writing, according to CoinMarketCap data.
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