senate Bill S8839

2021-2022 Legislative Session

Establishes certain offenses relating to crypto fraud

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Codes Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 22, 2022 referred to codes

S8839 (ACTIVE) - Details

See Assembly Version of this Bill:
A8820
Current Committee:
Senate Codes
Law Section:
Penal Law
Laws Affected:
Add Title K Art 191 §§191.00 - 191.25, Pen L

S8839 (ACTIVE) - Summary

Establishes the offenses of virtual token fraud, illegal rug pulls, private key fraud and fraudulent failure to disclose interest in virtual tokens.

S8839 (ACTIVE) - Sponsor Memo

S8839 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8839
 
                             I N  S E N A T E
 
                              April 22, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Codes
 
 AN ACT to amend the penal  law,  in  relation  to  establishing  certain
   offenses relating to crypto fraud
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Title K of the penal law is amended by adding a new article
 191 to read as follows:
                                ARTICLE 191
                               CRYPTO FRAUD
 
 SECTION 191.00 DEFINITIONS.
         191.05 PENALTIES.
         191.10 VIRTUAL TOKEN FRAUD.
         191.15 ILLEGAL RUG PULLS.
         191.20 PRIVATE KEY FRAUD.
         191.25 FRAUDULENT  FAILURE  TO  DISCLOSE  INTEREST  IN   VIRTUAL
                  TOKENS.
 § 191.00 DEFINITIONS.
   FOR  PURPOSES  OF  THIS  ARTICLE,  THE  FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "VIRTUAL TOKENS" SHALL MEAN SECURITY TOKENS AND STABLECOINS;
   2. "SECURITY TOKENS" SHALL MEAN ANY FORM OF FUNGIBLE AND  NON-FUNGIBLE
 COMPUTER CODE BY WHICH ALL SUCH FORMS OF OWNERSHIP OF SAID COMPUTER CODE
 IS  DETERMINED  THROUGH  VERIFICATION  OF TRANSACTIONS OR ANY DERIVATIVE
 METHOD, AND THAT IS STORED ON A PEER-TO-PEER  COMPUTER  NETWORK  OR  ANY
 OTHER  SUCH COMPUTERIZED SYSTEM OR THROUGH ANY DERIVATIVE MEANS OF STOR-
 AGE, AND WHICH CONFORMS TO ONE OF THE FOLLOWING:
   (A) SUCH CLASS OF VIRTUAL TOKENS ARE ADVERTISED BY THE DEVELOPER OR AN
 AGENT OF THE DEVELOPER AT THE DEVELOPER'S DIRECTION  TO  BE  BOUGHT  AND
 SOLD  FOR  THE  PURPOSE OF PROFIT, WHETHER OR NOT SUCH PURPOSE IS ADVER-
 TISED AS THE SOLE PURPOSE;
   (B) SUCH CLASS OF VIRTUAL TOKENS ARE REASONABLY UNDERSTOOD BY  MEMBERS
 OF THE PUBLIC TO BE BOUGHT AND SOLD FOR THE PURPOSE OF PROFIT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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