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New York bill aims to protect crypto investors from memecoin rug pulls

cryptoweekly by cryptoweekly
March 6, 2025
in bitcoin, News
0

“In my view, these activities should fall firmly within the jurisdiction of law enforcement agencies,” crypto regulations experts told Cointelegraph.

New York lawmakers have introduced legislation aimed at protecting cryptocurrency investors by targeting rug pull scams, where project insiders abruptly abandon a project and drain investor funds.

Assemblymember Clyde Vanel, chair of the New York Assembly’s Banks Committee, introduced Bill A06515 on March 5. The bill would establish criminal penalties specifically aimed at preventing cryptocurrency fraud and protecting investors from rug pulls.

Under the proposal, new criminal charges would be created for offenses involving “virtual token fraud,” explicitly targeting deceptive practices associated with cryptocurrencies.

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