Manhattan DA Pursues Criminal Charges Against Unlicensed Crypto Firms
Manhattan prosecutors are moving to criminally pursue operators running crypto businesses without proper licensing, citing the CRYPTO Act’s provisions that elevate unlicensed operation to criminal offenses and allow sentences as long as 15 years. That threat of felony-level punishment marks a clear escalation from civil enforcement and fines, and it puts exchanges, custody providers and borderline services on heightened notice. The practical impact could be significant: firms will face stronger incentives to obtain licenses or wind down risky products, while startups and certain peer-to-peer or decentralized services may confront legal uncertainty. Industry groups and defense attorneys are likely to challenge aggressive prosecutions, but for now the DA’s stance increases legal and operational risk across the sector. Market participants should reassess compliance, licensing timelines and contingency plans as prosecutions proceed.