NY State Senator’s Bill Builds Legal Framework to Prosecute Crypto Crimes
Kevin Thomas, a New York state senator, has introduced a new bill amendment that would establish some offenses related to rug pulls and other frauds with virtual tokens as official crimes, a report says. The bill, SB S8839, would call for defining, penalizing and criminalizing frauds targeted at developers and projects that would defraud crypto investors. The bill, aligning with the spirit of the blockchain and fighting fraud, would provide prosecutors a clear framework against various crypto crimes. The bill would reportedly add a law amendment applying rug-pull charges to developers selling over 10% of the tokens within five years of the date of the last sale of the tokens. The bill targets private key fraud, which means disclosing or misusing another person’s private keys without their consent beforehand. The bill would reportedly also work on charging developers with fraudulent failure to disclose an interest in digital tokens if they don’t disclose personal crypto holdings on their website openly on the landing pages.