What criminal risks and schemes are associated with meme coins according to authorities?

Governments have identified several major criminal risks with meme coins. In October 2024, US authorities charged 18 people and crypto firms for frauds targeting everyday investors. These schemes relied on market makers who artificially inflated trading volumes and prices, creating fake transactions to deceive unsuspecting investors. Beyond market manipulation, 'pump and dump' schemes present another significant risk, where prices are artificially inflated before major sell-offs, leaving late investors with losses. These fraudulent activities involve creating false impressions of buyer interest and market momentum, ultimately causing financial harm to retail investors who enter the market based on manipulated information.