Legal experts: Meme coin takeover team may face legal risks

2024-09-09 08:04:31

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ChainCatcher news, according to Decrypt, most meme coins in 2024 are driven by community takeovers, with hundreds of millions of dollars projects like Billy and Gigachad being taken over by early investors after developers exited, pushing their development forward.

Legal experts warn that community takeover teams may face legal risks such as misleading marketing, fraudulent trading practices, and even criminal false statements. Charlyn Ho, founder of Rikka Law, stated that teams need to clarify project goals and avoid false advertising, or they may face legal liabilities.

Bitget's Chief Legal Officer Hon Ng added that if founders engage in illegal activities, they will still be held legally accountable. However, lawyer Jacob Martin believes that the speculative nature of meme coins makes legal enforcement in this area less likely.

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