Legal experts: Meme coin takeover teams may face legal risks

Most meme coins in 2024 are driven by community takeovers, such as Billy and Gigachad, where hundreds of millions of dollars of projects are taken over by early investors after developers withdraw and promote their development.

Legal experts warn that community takeover teams may face legal risks such as misleading marketing, fraudulent trade practices and even criminal misrepresentation. Charlyn Ho, founder of Rikka Law, said that the team needs to clarify the project goals and avoid false propaganda, otherwise they may bear legal liability.