A new bill under consideration would criminalize various forms of crypto fraud. It includes rug pulls, private key misuse, and failure to disclose token ownership.
If passed, this anti-crypto fraud legislation could set a precedent for stricter oversight in the digital asset industry.
Cracking Down on Crypto Scams
Crypto scams have been running rampant, and lawmakers want to put a stop to them. The proposed bill specifically targets fraudulent schemes like rug pulls. In this type, developers hype up a token only to disappear with investors’ money. It also seeks to penalize those who misuse private keys.
Essentially, stealing assets by gaining unauthorized access. Additionally, crypto project founders would be required to disclose their token holdings. It will prevent them from secretly profiting while misleading investors.
LATEST: The New York Assembly considers bill to criminalize crypto fraud, including rug pulls, private key fraud, and undisclosed token interests. pic.twitter.com/vdblB7GMjL
— Cointelegraph (@Cointelegraph) March 6, 2025
New York legislators argue that existing laws don’t fully cover the unique risks of digital assets. By introducing clearer regulations, they hope to weed out bad actors and protect investors.
More About Crypto Frauds
Phantom Wallet recently published an educational tweet warning users about common crypto scams, specifically fake NFT airdrops and giveaways. The tweet explains that scammers lure victims by promising free tokens or NFTs, tricking them into clicking malicious links.
Common crypto scams: Fake NFT airdrops and giveaways
This scam promises you free tokens or NFTs to bait you into clicking a malicious link.
When you click the link, which is often found in a spam NFT or fake ad, it sends you to a malicious website and drains your wallet. pic.twitter.com/ytAQqs5sa7
— Phantom (@phantom) February 28, 2025
These links, often found in spam NFTs or fake ads, lead to dangerous websites designed to drain users’ wallets. Phantom’s warning serves as a reminder to always verify sources and avoid clicking suspicious links to stay safe in the crypto space.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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