Manhattan DA Targets Unlicensed Crypto Operators with Penalties
Manhattan DA Pushes Criminal Penalties for Unlicensed Crypto Operators
Manhattan District Attorney Alvin Bragg urged state lawmakers Wednesday to criminalize unlicensed crypto operations, arguing that gaps in oversight are being exploited by criminals to move illicit funds.
Bragg said a “$51 billion criminal economy” is thriving in regulatory blind spots, enabling money laundering tied to crimes including guns and drugs. His comments position unlicensed crypto activity as a public safety issue as well as a financial compliance problem.
The proposal would introduce graduated criminal penalties for operating without proper authorization, ranging from a Class A misdemeanor to a Class C felony. Under the bill, maximum sentences would range from 5 to 15 years in state prison, depending on the offense level.
The push reflects a broader effort by law enforcement to address how digital asset services can be used outside traditional compliance frameworks. While regulators typically rely on licensing and civil enforcement to police financial activity, Bragg’s message to lawmakers was that criminal penalties are needed when operators ignore licensing requirements and create openings for laundering and other illegal use.
