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Using its fictitious cryptocurrency, the FBI issued criminal charges against eighteen people and companies for participating in dishonest crypto operations and market manipulation. Under "Operation Token Mirrors," FBI agents developed a fictitious bitcoin token called NexFundAI to reveal dishonest trading methods like wash trading and pump-and-dump operations. Targeting CEOs of four cryptocurrency organizations and four financial services companies functioning as market makers, the charges issued by the U.S. Attorney's Office for the District of Massachusetts Allegedly manipulating token pricing, these companies—ZM Quant, CLS Global, MyTrade, and Gotbit—tracked investors into purchase at inflated rates. The FBI claims that the program led to the seizure of $25 million in cryptocurrencies and deactivated several wash trading bots. Establishing NexFundAI, an Ethereum-based cryptocurrency meant to trap market manipulators, was one of the essential parts of this operation. Special Agent in Charge of the FBI's Boston Field Office Jodi Cohen said this was an "unprecedented step."
NexFundAI keeps trading even though it is a law enforcement tool. Based on DEX Screener statistics, it now boasts a market valuation of $177,000 and a 5,000% increase in trading volume to $3.5 million during the previous 24 hours. According to the FBI, the accused companies created trading activity. They made false statements about their tokens to attract new investors, therefore contributing to the inflated valuations of the tokens.
The FBI developed the fictitious bitcoin to identify and stop fraudulent conduct throughout its probe. While Gotbit and its executives were accused of similar scams, ZM Quant, CLS Global, and MyTrade were charged with doing wash transactions on behalf of the bogus coin. The defendants are accused of creating trade activity and misrepresenting statements on their tokens to draw fresh capital. They reportedly inflated the token values using dishonest strategies like wash trades, then sold them off for profit in pump-and-dump operations.
Of them, Saitama, the biggest, apparently had a market worth in the billions at one point, according to the FBI. The fake transactions raised token values, enabling the defendants to benefit from sales at those higher levels. Authorities have apprehended other individuals in Texas, the United Kingdom, and Portugal; five defendants have admitted guilt or promised to do so. The SEC has civil lawsuits against many of the participating companies.
editor
A web 3 girl living in a web 2 world.
