The New York State Senator Kevin Thomas proposed a new bill asking to criminalize crypto offenses related to rug pulls and other frauds including misuse of private keys and hidden interests in crypto projects.
The bill drafted by Senator Thomas, Senate Bill S8839, requested for explaining, penalizing and criminalizing frauds (especially attacking developers). Frauds including projects that deceive crypto investors were requested to be criminalized.
The intention of the bill is to offer a clear-cut legal structure against crypto crimes that lines up with the essence of the blockchain while also combatting fraud.
The bill asks for an imposition of rug pull charges on developers that sell “more than 10% of such tokens within five years from the date of last sale of such tokens.”
Speaking of ‘private key fraud’, it includes revealing/misusing someone’s private keys without prior affirmative consent.
As per the bill, developers who fail to publicly disclose personal crypto holdings on the landing page of the primary website can be charged with fraudulent failure for revealing an interest in digital tokens.
The bill is still under committee review to determine its eligibility as of this writing. Also there’s no specific date on when the review of the bill will be done.
Crypto regulations have time and again been a topic of discussion amongst US administrators. Earlier this month, US Senators had introduced the ‘Accountability for Cryptocurrency in El Salvador Act’ to ease the risks from El Salvador’s adoption of Bitcoin as legal currency to the United States.
