The New York Financial Services Department has issued a consumer warning about Meme coins, emphasizing their high volatility and high risk of fraud

The New York Department of Financial Services has issued a consumer alert, warning to be wary of "emotion-based virtual currencies," or Meme coins, emphasizing their extreme volatility, lack of regulation and high risk of fraud, including sudden price pumping schemes known as "cutting leeks." The department warns that these tokens are often controlled by a small group of insiders, created on unauthorized platforms and are susceptible to severe price manipulation. The New York Department of Financial Services also stated it has begun closely monitoring Meme coins. As part of the scam, creators or insiders may engage in manipulative "wash trading" to create the illusion of market activity and rising prices. It is usually difficult for the public to discern which Meme coins are manipulated; consumers should be particularly cautious about emotion-based virtual currencies recently created on unauthorized platforms.