Cryptocurrency dealings have been in a gray area when it comes to New York law, but that may be coming to a close. Senate Bill S8839 is currently being debated this week. If it passes, then four new crimes revolving around cryptocurrency will become encoded in New York law.

Actions like virtual token fraud would lead to penalties of fines up to $5 million and an imprisonment term of 25 years in prison!

Aside from this law, there are several existing laws that you could end up breaking if you’re dealing with cryptocurrencies on a frequent basis. Learn more about one New York resident who was recently implicated in a cryptocurrency scam and the potential penalties he could face below.

New York Resident Arrested in $1.8M Crypto Scam

In late April of 2022, the FBI arrested a 37-year-old New York resident who is accused of running a long-term crypto mining scam that defrauded victims out of about $1.8 million between 2019 and 2021.

According to the authorities, the suspect created an online persona claiming to be a cryptocurrency mining equipment dealer. The suspect told potential investors that he would purchase several S9 miners and host all the mining equipment at a Goose Bay facility. Investors would be able to support the crypto mining project with their money, and in exchange, they’d start to receive cryptocurrency that was mined on the machines.

In reality, though, the suspect never purchased the necessary equipment. At least one investor became so suspicious that he demanded the suspect drive him to the Goose Bay facility to show him proof of the alleged equipment. The suspect picked the victim up, drove him partway, and then abandoned him at an airport. The following year, the suspect hatched a secondary crypto scam. Now, the suspect has been arrested and charged with wire fraud, which could result in up to 20 years in prison.

Crypto Crimes and Penalties in New York

Are you wondering why the suspect was charged with wire fraud? As it stands, there aren’t many cryptocurrency-specific crimes outlined in New York’s laws. There are computer laws, theft laws, and other charges that can be levied, and they all come with different degrees of penalties. If you’ve been accused of a crypto crime, then it’s advised you seek the help of an attorney to better understand the situation you’re up against.

Are You Looking for a Crypto Crime Defense Attorney?

Have you recently been accused of committing a cryptocurrency-related crime in New York? If so, then you may not have a solid understanding of the exact crime you committed or the potential penalties. For that reason, it’s crucial to hire a crypto crime defense attorney who can help you better understand the severity of the situation you’re facing. From there, you and your lawyer should work on constructing a solid defense strategy to help you secure a better legal outcome.

Are you currently looking for a defense attorney in New York? If so, then we can help. Contact us now to discuss your charges in more detail with one of our experts.