Alert đ¨ đ¨ New Yorkâs New Bill Targets Crypto Scammers and Rug Pullsđ¨đ¨đ¨
Cracking Down on Crypto Fraud
New York lawmakers are taking action against fraudulent cryptocurrency schemes with a new bill designed to punish those behind rug pulls. Assembly member Clyde Vanel introduced Bill A06515 on March 5, aiming toestablish criminal penalties for insider scams that drain investor funds.
What Is âVirtual Token Fraudâ?
The bill introduces new criminal charges for âvirtual token fraud,â covering both fungible and non-fungible tokens stored on blockchain networks. It specifically targets deceptive practices in cryptocurrency trading, particularly in security tokens and stablecoins.
Memecoin Scams on the Rise
The recent surge in Solana-based memecoin scams has led to a massive $485 million capital flight in February alone. The collapse of the Milei-endorsed Libra token further exposed insider trading and market manipulation, fueling concerns about the lack of oversight in the crypto space.
Law Enforcement Steps In
Anastasija Plotnikova, CEO of blockchain regulatory firm Fideum, stresses that rug pulls are not only unethical but clearly illegal. She argues that such activities should be firmly within the jurisdiction of law enforcement agencies to prevent further investor exploitation.
A Turning Point for Crypto Regulation?
If passed, Bill A06515 could set a new standard for holding crypto scammers accountable. With increasing scrutiny on digital assets, the industry may be moving towards a future with stronger protections for investors.
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