What are the consequences for participating in a pump and dump scheme on a crypto exchange?

1 answers

• JoanOct 09, 2025 · a month ago
  Participating in a pump and dump scheme on a crypto exchange can have severe consequences for both individuals and the overall market. Pump and dump schemes manipulate the price of a cryptocurrency by artificially creating demand and then selling off the inflated holdings. This can lead to significant financial losses for participants who buy in at the peak and fail to sell in time. Additionally, engaging in such schemes is considered market manipulation and is illegal in many jurisdictions. Regulatory authorities are cracking down on pump and dump schemes, and individuals caught participating can face fines, legal action, and even imprisonment. It's important to remember that the crypto market thrives on trust and transparency, and participating in pump and dump schemes undermines the integrity of the market. As a responsible investor, it's best to avoid such schemes and focus on legitimate investment strategies.
  927

  464