Allegations Link Cartel to $PIPPIN via DexTools
Allegations link an accountant for the Jalisco New Generation Cartel (CJNG), known as the 'El Mencho' cartel, to money laundering within the cryptocurrency ecosystem. Illicit funds were reportedly moved into the $PIPPIN token via DexTools, a decentralized exchange aggregator, as the primary conduit for on-chain transactions.
The El Mencho Cartel, a criminal organization based in Jalisco, Mexico, has a documented history of engaging with cryptocurrency, including a token designated as $CJNG on the Solana blockchain (address: 9LF6G34LkKSE6QGYvw9WSDGGWMb2bsyFcP3YeotBpump). The $PIPPIN token itself operates on the Solana network and has been described as an "AI-born unicorn," accumulating a large holder base. The alleged use of DexTools, a platform aggregating data from various decentralized exchanges, has led law enforcement officials to express concerns.
$PIPPIN Sees Volatile Surges Amidst Claims
Data shows $PIPPIN recorded a 24-hour price increase of 10.8%, reaching $0.783601, and appreciated by 28.8% over a seven-day period. Specific instances of price surges included a 10.65% increase, a 7.75% spike on Binance Futures with a volume of 10.96 million, and a notable 30.23% gain at one point.
Community Divided, Scrutiny Intensifies
The allegations and $PIPPIN's market performance resulted in mixed sentiment within the crypto community. While overall sentiment regarding the money laundering claims was bearish, opinions toward the token itself ranged widely, with positive sentiment scores reaching extremes of 98 and negative sentiment scores reaching extremes of -95.
Discussions often focused on the token's strength and its ability to turn resistance into support, with some community discussions highlighting risks for short positions due to upward momentum. Conversely, bearish views expressed concerns about it being a scam token and fears of manipulation. Some community members voiced alarm over the token's rapid ascent, noting it had reportedly "flipped $BONK on Solana" despite unknown developers and fears of a rug pull. The token's mindshare increased by 0.3%, reflecting heightened attention. Despite the controversies, $PIPPIN has cultivated a community reportedly boasting 16.6 million holders, contributing to its emergence as the seventh-largest meme coin at one point.