The meme coin industry is undoubtedly one of the fastest-growing sub-sectors in crypto. As of October 10, CoinMarketCap data shows that the total market cap of all meme coins exceeds $47 billion. Dogecoin, Shiba Inu, and Pepe top the list, commanding billions and, in some instances, hundreds of millions.

United States DoJ Cracks Down On Meme Coin Wash Traders And GoBit

Bullish as the industry might be, it is rife with pump-and-dump schemes and even rug pulls. Traders have lost millions through rug pulls. There are hundreds of millions more lost through pump-and-dump schemes.

On October 9, the United States Department of Justice (DoJ) announced the arrest and prosecution of four crypto firms and 14 individuals. Detectives also recovered over $25 million of diverse crypto assets.

Among those nabbed included Aleksei Andriunin of GoBit, a meme coin market maker and hedge funds. As part of their services, they created liquidity for the tens of thousands of meme coins launching on multiple networks, including Solana.

The DoJ alleges that GoBit and everyone arrested were engaged in wash trading and knowingly manipulating meme coin prices.

Wash trading is illegal in the United States and jurisdiction a

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Author: Dalmas Ngetich