New legislation filed this week in the US state of New York takes aim at so-called rug pulls and other crypto-specific forms of fraud. Senate Bill S8839,
The bills were introduced by State Sen. Kevin Thomas and Assemblymember Clyde Vanel, respectively.
The focus on rug pulls — a term that refers to the sudden exit of a developer or founding team and the theft of investor funds — is a notable one, given the prevalence of such moves in the crypto space, particularly around non-fungible tokens. Last month, federal prosecutors in New Yorkcharges against a pair of defendants in connection with the rug pull of Frosties, a fraudulent NFT project.
The New York legislation proposes limits on the ability of such founding development teams to sell significant percentages of their token holdings within a five-year period.1. A DEVELOPER, WHETHER NATURAL OR OTHERWISE, IS GUILTY OF ILLEGAL RUG PULLS WHEN SUCH DEVELOPER DEVELOPS A CLASS OF VIRTUAL TOKEN AND SELLS MORE THAN TEN PERCENT OF SUCH TOKENS WITHIN FIVE YEARS FROM THE DATE OF THE LAST SALE OF SUCH TOKENS.
2. THIS SECTION SHALL NOT APPLY TO NON-FUNGIBLE TOKENS WHERE A DEVELOPER HAS CREATED LESS THAN ONE HUNDRED NON-FUNGIBLE TOKENS THAT ARE REGARDED AS PART OF THE SAME SERIES OR CLASS OF NON-FUNGIBLE TOKENS OR WHERE SUCH NON-FUNGIBLE TOKENS REGARDED AS PART OF THE SAME SERIES OR CLASS ARE VALUED AT LESS THAN TWENTY THOUSAND DOLLARS AT THE TIME THE RUG PULL OCCURS."
In the Senate, the bill has been referred to the chamber's Codes Committee, as has it in the Assembly.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russian state TV hosts laugh as they discuss firing nuke at New York CityRussian state TV hosts joked about attacks on their “so-called partners,” claiming that “Americans have always feared our heavy rockets.”
Read more »
New York State is recruiting a manager for its $200 million cannabis social equity fundNew York State's efforts to provide economic support to social equity license holders in its legal cannabis program continue to take shape.
Read more »
MoneyGram sued by U.S., New York over remittance transfersMoneyGram International Inc was sued on Thursday by two regulators for repeatedly violating a federal rule designed to make it easier for people to send money to friends and family outside the United States.
Read more »
Breeze Airways to add new nonstop route from Jacksonville to New York CityBreeze Airways is adding a new nonstop route from Jacksonville International Airport (JAX) to New York City’s Westchester Airport (HPN), just north of Manhattan, the Jacksonville Aviation Authority announced Thursday.
Read more »
New York physician indicted in $10 million health care telemedicine fraud schemeA New York physician was charged in an indictment on Thursday over an alleged $10 million health care fraud scheme.
Read more »
Nancy and Zach New plead guilty to bribery and fraud in state welfare caseBREAKING: Nancy and Zach New plead guilty to bribery, fraud charges in state welfare case. They have agreed to cooperate with prosecutors and testify against co-defendants. Ongoing investigations could result in charges against additional people.
Read more »