Lawmakers in New York are pushing a bill, Assembly Bill 6515, to combat crypto fraud by imposing criminal penalties on deceptive practices. The proposed legislation targets activities such as rug pulls, private key fraud, and failure to disclose financial interests in digital assets. Developers selling more than 10% of a token's total supply within five years could face prosecution, except for smaller NFT projects. The unauthorized access or misuse of private keys would also be criminalized unless explicit consent is given. The bill aims to enhance transparency by mandating developers to publicly disclose their token holdings. If passed, the law could impose fines of up to $5 million and prison sentences of up to 20 years on individuals and companies involved in deceptive cryptocurrency practices.



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