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Senator proposes criminalization of crypto frauds in New York

Senator

TL; DR Breakdown

  • Senator wants to criminalize crypto frauds in New York
  • Senator Thomas wants a clear and strict guideline
  • The bill is undergoing review

The prevalence rate of fraud in the crypto market is now at a scary pace, pushing all concerned individuals to seek solutions. Some weeks ago, the Ronin bridge was hit with one of the biggest attacks as hackers made away with over $600 million. In a bid to seek solutions to the issues, a Senator from New York has submitted a bill that will treat malicious actors as criminal elements.

The Senator wants a guideline regarding the frauds

According to Thomas, the Senator in question, the new bill will open up ground against those found guilty of offenses bordering on frauds. Asides from rug pulls, the Senator also wants other major acts related to stealing private keys also dealt with the same way. The bill will define the grounds for fraud and sanction those involved by recognizing the act as a criminal offense. The bill is specifically being pushed against projects and companies with plans to scam investors of their money.

Thomas hopes that with the bill, the country will release a clear guideline that will be established against crimes in the crypto sector to eliminate crimes and criminal elements. The bill also states that any developer who sells more than 10% of their tokens in five years should be prosecuted under the proposed rug pull act.

The bill is undergoing review

In his definition of fraud related to private keys, Thomas noted that it means accessing or using private keys that belong to an investor without a clear and explicit permission. The bill also wants developers arrested for fraud if they refuse to show the exact number of assets that they hold on their website. The bill is still undergoing a review by the committee before it is eventually passed to the floor for review.

Beforehand there has been a joint bill that will help the US evade certain risks associated with El Salvador choosing to adopt Bitcoin as its official currency. As previously reported across media houses, the bill will consider certain aspects that El Salvador’s choice might prove risky. Among the factors taken into consideration are include governance. The lawmakers acknowledge the country as an independent country but want to try to have measures in place to protect its interests against blowback from the country’s choice.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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