Department of Justice announcements of new indictments

US Charges 18 in First Crypto Market Manipulation Case; FBI Created 'NexFundAI' Token to Catch Suspects

Oct 9, 2024, 08:11 PM

The US government has charged 18 individuals and companies, including Gotbit, ZM Quant, CLS Global, and MyTrade, with widespread cryptocurrency market manipulation and fraud. This marks the first criminal prosecution against financial services firms for market manipulation and sham trading in the crypto sector. Prosecutors allege that the defendants, including 14 individuals, engaged in sham trading and fraudulent practices to manipulate cryptocurrency markets. As part of an undercover operation, the FBI created its own cryptocurrency token, "NexFundAI," deploying it on the Ethereum blockchain to identify and disrupt the alleged fraudsters. The indictments are sealed, and no further details are available at this time. The Securities and Exchange Commission (SEC) has also charged three market makers and nine individuals in a crackdown on manipulation of crypto assets offered and sold as securities.