State Senator Kevin Thomas, Chair of the New York Senate Consumer Protection Committee, said that rugpull fraud and other widespread cryptocurrency and DeFi introduced a bill to criminalize cheating.
Cryptocurrency and DeFi Frauds Demanded to Be Criminalized
As it is known, especially recently, fraud methods called rugpull have begun to threaten the DeFi world more and more, and millions of dollars of users have been stolen by this method.
As it is the most common form of DeFi scam, some US politicians have focused on the issue and demanded that this scam, which is not yet covered by the law, be criminalised.
State Senator Kevin Thomas and Congressman Clyde Vanel introduced bill S8839.
The bill specifically targets developers and projects that aim to deceive cryptocurrency investors. Under the bill, frauds are demanded to be punished, identified and criminalized.
The scope of the bill submitted to the New York Senate includes areas such as virtual token scams, rugpull scams, private key forgery and non-disclosure of an interest relationship with a virtual token.
As it is known, rugpull scam means that the developer team of a project disappears with the funds of the investors, leaving the investors with worthless tokens that they cannot sell.
Developers Will Not Sell More Than 10 Percent Of Crypto Assets In 5 Years
With the draft law, it is desired to introduce an obligation for crypto money project developers to sell a maximum of 10% of their assets within five years from the last sale date.
This proposal was included in the bill as follows:
“A developer has committed illegal rugpull scam if they have naturally or intentionally sold more than 10% of existing crypto assets in the five years since their last sale.”
*Not investment advice.