Bill > A08820

This bill establishes the offenses of virtual token fraud, illegal rug pulls, private key fraud, and fraudulent failure to disclose interest in virtual tokens. It defines key terms like "virtual tokens," "security tokens," "stablecoins," "developer," and "private key." The bill sets penalties for violations, including civil fines of up to $5 million or imprisonment of up to 20 years, or both. It also specifies that developers who sell more than 10% of a class of virtual tokens they created within 5 years are guilty of illegal rug pulls, with some exceptions for non-fungible tokens. The bill further requires developers to publicly disclose the number of tokens they own in the classes they developed.