Landmark Legislation to Target Crypto Fraud in New York State – CryptoNinjas
The post Landmark Legislation to Target Crypto Fraud in New York State – CryptoNinjas appeared on BitcoinEthereumNews.com.
Key Takeaways: Crypto fraud & rug pulls targeted by NY bill to protect investors Legislation boosts transparency & developer accountability, influencing market confidence Amid rising crypto scams, the bill aims to address the regulatory needs of American investors. These provisions were included in a new bill introduced in New York State designed to safeguard crypto investors by criminalizing cryptocurrency fraud in all its forms, including the extractive “rug pull” schemes and private key thievery. Such a piece of legislation will be hailed as a major step towards regulating the hitherto unregulated world of digital assets and creating a safer marketplace for investors. It has already spawned a lot of excitement across both the crypto space and elsewhere. Background: Crypto Fraud Is on The Rise This bill comes in wake of an alarming increase in cryptocurrency scams and fraudulent activities. According to Chainalysis data, a staggering $51 billion has been lost to crypto crime annually. In response to this list of illegal activities, investor confidence has decreased and the need for strict regulation has been shown. A clear example of this occurred in 2022. Crypto-related fraud was up 45% year over year, resulting in significant investor losses, according to the FBI. What’s in the Bill? On March 5, 2024, Assembly member Clyde Vanel proposed Bill A06515, which aims to prevent investor fraud, including rug pulls. Bill A06515. Source: New York State Assembly The proposed legislation includes key components such as: Creating a New Offense of “Virtual Token Fraud”: The bill would create novel criminal offenses targeting fraudulent conduct in relation to virtual tokens. Cracking Down on “Illegal Rug Pulls”: Developers selling over 10% of a token’s total supply within five years of its last sale could be – yes – prosecuted for doing so, aiming at cashing out only to abandon…
Filed under: News - @ March 7, 2025 12:22 pm