• New York State Senate wants to reduce digital asset fraud.
• New regulations will make it illegal to pull cryptorugs in the US.
• While the bill is being set by new regulations, it’s still under development.

A bill was introduced by the New York State Senate to reduce digital asset crimes. Senate Bill S8839, introduced Wednesday by Senator Kevin Thomas was referred to the committee.

As an official summary, the bill “establishes the offenses of virtual token fraud, illegal rug pulls, private key fraud, and fraudulent failure to disclose interest in virtual tokens.” The bill was also announced under the title, “[a]n act to amend the penal law, in relation to establishing certain offenses relating to crypto fraud.”

As a result of increasing digital crime, such as rug pulls and private key fraud, virtual token fraud and fraudulent failures to disclose virtual token interest, this was done. News covered several rug pullings over the past month. Also, hacks targeted holders and traders of crypto and NFTs.

The bill suggests a civil fine of no more than five million dollars or service in prison for no longer than 20 years or both, yet the original paper added, “except where such a person is a person other than a natural person, a fine not exceeding twenty-five million dollars.” This condition is attributed to the knowledge that a natural person is an individual, while a legal person could be a private or public company.

In relation to the news, this bill follows another bill—Bill A6389C—issued on April 26, 2022, and summarized as a regulation “[establishing] a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations shall be subject to a full generic environmental impact statement review.”

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