On April 25, the bill S8839 was proposed in the New York State (NYS) Senate about the criminalization of the “rug pills” and other crypto frauds happening around the world. Two days later, eventually the state’s Assembly passed a new ban sanction on the non-green Bitcoin mining facilities. However, negative reviews soon started pouring in until the ban was temporary and mainly aimed only at the energy providers.
The fraud bill by State Senator Kevin Thomas also helped prevent continued fraud in the industry and drive more innovation in the crypto and blockchain sector. With the advancements in the new technology, it is important to apply certain rules and regulations to combat fraud. Some people even commented that the bill was unworkable and the biggest non-starter for people to publish their personal investments online. The associations also added that all the offenses were clearly covered under the New York State and federal law.
On the other hand, it can get tough to trust the fraud dogs of the cryptocurrency sector as the scam revenue has gone to an all-time high since 2021. The process starts with a developer creating virtual tokens, advertising to the public as investments, and readily waiting for the price to rise gradually. Meanwhile, they sell all at once, causing the price to drop instantly.
The summary also talks about the Squid Game Coin (SQUID) that started from $0.016 per coin and rose to $2,861.80 per coin in just a week, then crashed to $0.0007926 in less than five minutes. The creators managed to earn about 23,000,000% return on the investment, while the visitors got a backlash of millions.
Some people weren’t very convinced with the bill, but adding a provision for developers that sell more than 10% of such tokens in five years should be charged for the crime. However, according to the netizens, it was sloppy legislative drafting and had no precision.
The bill also stresses the fact to take note of the developer’s notoriety as they publish their personal investments.
Some people suspect that the bills were drafted in a hurry and need rectification. As a matter of fact, it is no surprise that the NYS seems to forge its path through blockchain and cryptocurrency regulations as it has no purpose of scaring away the big investors.