New York Bill aims to protect Crypto investors against Memecoin carpet

New York parliamentarians have introduced legislation aimed at protecting cryptocurrency investors, aiming at traction scams, where people inside the project suddenly abandon a project and drain funds for investors.

The Clyde Vanel Assembly, the chairman of the New York Bank Committee Committee, PUT The draft law A06515 of March 5. The draft law would establish criminal penalties that specifically aim to prevent cryptocurrency fraud and to protect investors against carpet tractions.

According to the proposal, new criminal accusations for offenses that involve “fraud with virtual symbols”, which explicitly concern the misleading practices associated with cryptocurrencies, would be created.

*Bill A06515. Source:* *New York State Assembly*

“Virtual chips” refers to security and stablecoins chips, while “security chips” include “any form of fungal and non-functional computed code through which all these forms of the mentioned computer code are determined by checking the transactions or by any derived method and which are stored on a peer-off computer network.”

The draft law comes shortly after the space began to face a large -scale disappointment of investors in Memecoins, especially after launching the Balance token, which was Approved by Argentine President Javier Milei.

The Balance Project Insiders are supposed to have siphoned Lichidity worth $ 107 million In a carpet traction, triggering a price collapse of 94% in a few hours and wiping $ 4 billion in investor capital.

*Balance of chips. Source:* *Letter Kobeissi*

The increasing wave of Memecoin -based scams based on Solana led to a Crypto Capital Flight, which led to over $ 485 million in outputs For Solana in February.

The carpets “should be firmly in the jurisdiction of law enforcement”

The increase of the deception related to Memecoin has significant regulatory challenges, according to Anastasija Plotnikova, co-founder and CEO of the Blockchain Fideum regulatory company.

Privileged scams and “fraudulent activities”, such as carpet tractions, which are “not only non -ethic, but also clearly illegal, with jurisprudence to support application”, should see more closely regulatory attention, a more detailed attention told Cointeraph. She added:

“In my opinion, these activities should be firmly in the jurisdiction of the law enforcement agencies.”

There were more disturbing revelations since the scrolling Token Balance e-endorsed milesIn particular, the balance was an “open secret” in Memecoin Insidere Circss and that some members of decentralized Jupiter knew about launching the token two weeks before.

https://www.youtube.com/watch?v=tvmj6rr4so

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