Bill > A06515

This bill establishes a new legal framework for addressing fraud in cryptocurrency by creating three specific criminal offenses related to virtual tokens: virtual token fraud, illegal rug pulls, and private key fraud. The bill provides detailed definitions for technical terms like blockchain, virtual tokens, developers, and private keys, and sets penalties of up to 20 years imprisonment and/or a fine of up to $5 million for individuals (or $25 million for non-natural entities). Virtual token fraud occurs when someone intentionally uses deceptive practices in buying, selling, or handling virtual tokens. An illegal rug pull happens when a token developer intentionally misrepresents a token's purpose and then sells off their holdings or abandons the project, causing substantial financial loss to investors. Private key fraud involves obtaining, disclosing, or misusing another person's private cryptographic key without their clear, informed consent. The legislation aims to protect cryptocurrency investors by establishing legal consequences for fraudulent activities in the emerging digital asset space, with carefully crafted definitions that distinguish between legitimate business practices and intentional fraud.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A6515