How Scammers Wash Stolen Funds in Crypto using meme coins, this is the third explanation we are dropping on this and hopefully, everyone understands.
Yesterday, we came across a screenshot where someone made $800,000 in profit trading a particular meme coin called “Company.”
A few minutes later, we saw another screenshot where a different trader lost $1.5 million trading that same meme coin.
Then, just moments after, we came across yet another screenshot of traders making massive profits, but one trade in particular caught our attention: Turning $7 into $100,000.
Hmmmm... do you know what’s actually happening here?
They’re cleaning stolen, or let’s say, illegal funds.
There’s a new money laundering tactic going on using meme coins, and here’s how it works:
Scammers with stolen funds, for example, $1.5 million send the money to a wallet, Let’s call this wallet Wallet A.
Then, these same scammers create or use other wallets, let’s name them Wallets B, C, and D.
They use Wallet B to create a meme coin, and then buy $80 worth of it with the same wallet.
Next, Wallet C buys $200 worth of that same meme coin.
Then Wallet D buys $400 worth.
They repeat this process with multiple wallets, making small, scattered purchases.
Finally, they take the stolen $1.5 million from Wallet A and use it to buy a large amount of the meme coin.
Once they do this, here’s what happens:
The value of the meme coin in Wallet B jumps from $80 to $100,000
In Wallet C, from $200 to $300,000
In Wallet D, from $400 to $600,000
Now that the prices have pumped, they begin selling from Wallets B, C, and D.
At the end of the day, Wallet A loses the $1.5 million, because it was used to pump the coin.
But now, Wallets B, C, and D have cashed out, making that money appear as clean, legitimate profit.