New York lawmakers have introduced legislation aimed at protecting cryptocurrency investors by targeting ragpur scams in which project insiders suddenly abandon the project and discharge investor funds.
Rep. Clyde Vannell, chairman of the New York Congress’ Banking Committee, introduced Bill A06515 on March 5th. The bill will establish criminal penalties aimed at preventing cryptocurrency fraud and protecting investors from ragpur.
Under the proposal, new criminal charges will be created for crimes that include “virtual token fraud,” which explicitly targets deceptive practices related to cryptocurrency.
Building A06515. sauce: New York State Legislature
“Virtual token” refers to security tokens and stubcoins, while “security tokens” include “any form of final and impossible computer code. All ownership of such computer code is determined through transactional or derivative method verification and is stored in a peer-to-peer computer network.”
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The bill comes shortly after the space began experiencing widespread investor disappointment in Memecoin, particularly after the launch of the Libra token, approved by Argentine President Javier Mirei.
Libra Project insiders are said to have sucked up more than $107 million in liquidity with a lag pull.
Libra token crash. sauce: Cobessy’s Letter
The growth wave of Solana-based Memecoin scams has led to a wave of “safety” to Crypto Capital Flight, resulting in Solana’s outflow exceeding $485 million during February.
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Ragpur “should fall firmly within law enforcement jurisdiction.”
The rise of Memecoin-related fraud poses an important regulatory challenge, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
“Fraudulent activities” and “completely illegal activities” like Ragpur, which are not only unethical but clearly illegal, along with case law to help enforcement, should see more thorough regulatory attention, Plotnikova told the Cointelegraph. She added:
“In my view, these activities should fall firmly within the jurisdiction of law enforcement.”
Milei-Andoresed Libra Token meltdown, in particular Libra, is the “open secret” of Memecoin Insider Circles, and it has emerged a more troublesome revelation that some members of the Jupiter Distributed Exchange knew they would be releasing the token two weeks ago.
https://www.youtube.com/watch?v=TVMMJ6RR4SO
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