Bitwise Explains Why Rug-Pulls May Not Always Break the Law
Bitwise Head of Alpha Strategies Jeff Park stated that memecoin rug-pulls are not always illegal, depending on the specific circumstances.
His comments followed the LIBRA token’s massive crash, which wiped out over $4 billion in market value. Investors accused Kelsier Ventures, behind the token’s launch, of insider trading and market manipulation, with the team reportedly profiting $100 million.
Park suggested that if memecoins are classified as commodities rather than securities, insider trading charges wouldn’t apply. Instead, allegations of market manipulation or fraud would need to be proven. Legal action is likely required to resolve these accusations.
Clever Robot News Desk 19th February 2025
