Manhattan DA’s Push for CRYPTO Act: New Penalties to Battle Crypto Scams and Fraud
A New Crackdown on Crypto Crime in New York
Crime in the world of cryptocurrency is growing fast. Scammers use digital coins to steal money from everyday people. Now, the
What is the CRYPTO Act?
The CRYPTO Act is a bill in New York state. It targets businesses that exchange, send, or trade crypto without a proper license. New York already has strict rules called BitLicense. But this new law adds criminal charges.
Manhattan District Attorney Alvin Bragg says the penalties are tough. “If you’re moving a million dollars of crypto, it would be a C felony, five to 15 year’s imprisonment,” he explained.
This means jail time for big unlicensed deals. Smaller ones could face lesser charges. The goal is to scare off criminals and unlicensed operators.
Why Now? Rising Crypto Scams Hit New Yorkers Hard
Crypto crime is everywhere in New York. Local prosecutors see new tricks every day. Scammers run investment frauds, romance scams, and money laundering schemes.
One big problem: unlicensed crypto ATMs. These machines pop up in stores. They are owned by hidden people. Criminals use them to clean dirty money or cash out scam profits.
State Sen. Zellnor Myrie introduced the bill. He hosted a briefing with Bragg’s Crypto Crime Bureau. “The scams that are happening almost on a daily basis are happening to everyday New Yorkers,” Myrie said.
Prosecutors struggle to keep up. Tech-savvy crooks hide behind crypto’s speed and privacy.
Real Examples of Crypto Crime
- Investment Scams: Fake projects promise huge returns. Victims send crypto and lose it all.
- Romance Scams: Online lovers ask for crypto “help.” Money vanishes.
- Money Laundering: Criminals swap dirty cash for crypto at ATMs, then move it away.
- Unlicensed ATMs: Over 1,000 in NY, many without oversight.
Bragg’s office has busted many cases. The Crypto Crime Bureau leads the fight.
How the CRYPTO Act Would Help
Passing this law gives tools to cops and DAs. They can charge operators of unlicensed ATMs and exchanges. No more hiding behind civil fines.
New York leads in crypto rules. The BitLicense from 2015 set the standard. But enforcement needs teeth. Criminal penalties close the gap.
Businesses must get licensed. This protects users from fly-by-night ops. Legit firms like Coinbase already follow rules.
Impact on the Crypto Industry
Good actors welcome safety. Scams hurt trust in crypto. A 2023 report showed $4 billion lost to crypto fraud worldwide.
In New York, strict rules keep big players. But small, shady ones flee to lax states. The CRYPTO Act pushes uniform standards.
Critics worry it scares innovation. More rules mean higher costs. Yet, safety builds long-term growth.
Global Context
Other places act too. EU’s MiCA rules crypto firms. US federal laws lag. States like NY fill the void.
FTX collapse showed risks. Tough laws prevent repeats.
What Happens Next?
The bill is in the state Senate. Lawmakers must vote. Bragg and Myrie push hard.
If passed, expect raids on bad ATMs. More licenses checked. Safer streets for crypto users.
Tips to Avoid Crypto Scams
- Use licensed exchanges only.
- Check ATM operators.
- Never send crypto to strangers.
- Report scams to authorities.
- Learn basics: DYOR (Do Your Own Research).
Stay safe in crypto. Regulation helps everyone.
Final Thoughts
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