Embattled New York attorney general Letitia James (D) is facing a new challenger as she scrambles to stay in power and out of jail. 

36-year-old cryptocurrency lawyer Khurram Dara, a Republican, will seek to deny James a third term in 2026 and end the reign of "lawfare" once and for all, the New York Post reports.

"Letitia James has been a professional politician for over twenty years and throughout her career she has consistently put her own political interests ahead of New Yorkers,” Dara said.

"I’m running for New York State Attorney General because the people of New York deserve an AG that puts New Yorkers first, not one consumed by her own political ambitions.”

James faces challenger

James has never been shy about using her office to settle political scores and make a name for herself, going back to her successful 2018 campaign in which she explicitly pledged to target President Trump.

She was the only incumbent statewide Democrat in New York who refused to debate their opponent in 2022, when she won re-election by less than 10 points, defeating Republican Michael Henry.

Henry is running again with backing from the party's state Republican apparatus, but he's facing a primary challenge from Dara, a Brooklyn-based attorney who recently worked for Bain Capital's crypto venture fund.

Abuse of power

The young lawyer has placed James' abuse of power at the center of his campaign, accusing her of targeting opponents and suffocating business in New York with regulations.

“The evolution of state AGs into regulators and policymakers has been costly in more ways than one – and nowhere has that been more apparent than in New York. Not only did it set the stage for Letitia James’ partisan lawfare, it has also increased the cost of doing business – leading to higher prices at a time when New Yorkers face a crippling affordability crisis,” he said.

“Letitia James has not earned another term. New York needs an Attorney General that will enforce the law, not politicize it. That’s why I am running.”

James on defense

Earlier this year, James suffered a humiliating defeat when an appeals court stocked with Democratic appointees tossed the gargantuan $500 million civil judgment that she won in her controversial case against Trump and his business.

Ironically, James has since been criminally charged for taking out fraudulent loans - the very thing she accused Trump of doing.

James has denied wrongdoing, while embracing the prosecution to burnish her image as an anti-Trump champion.

While Republicans have made significant inroads in New York recently, the party has yet to break the Dems' years-long grip on power in Albany, and it's unclear if that will change next year - but one can always hope.