- The U.S. government has indicted three crypto companies and 15 individuals on charges of market manipulation in multiple cryptocurrencies.
- Defendants include cryptocurrency companies Gotbit, ZM QUANT, CLS Global, and MyTrade, as well as their employees and accomplices.
- The FBI has allegedly created a token named NextFund AI Token to catch bad guys.
The U.S. government on Wednesday took legal action against three crypto companies and 15 individuals for alleged market manipulation and fraud, including artificially inflating the price of cryptocurrencies to increase profits.
US government charges Gotbit, ZM Quanto, CLS Global and founders with market manipulation charges
US prosecutors have indicted three crypto companies and 15 individuals, including Gotbit, ZM QUANT, and CLS Global, in a landmark case of market manipulation and fraudulent transactions in the crypto industry. The lawsuit, filed in District Court in Boston, Massachusetts, has already received widespread attention.
The manipulated tokens involved include VZZN, The NextFund AI token, and Saima token. According to the filing, the defendants advertised seemingly legitimate services on ZM QUANT while secretly providing illegal services to clients.
They also executed manipulative trades that increased the trading prices and volumes of these cryptocurrencies in order to attract investor attention.
These companies also induced certain exchanges to lower their trading fees while hiding their profits in multiple wallets.
The investigation revealed several online conversations between the workers and their accomplices on platforms such as Telegram and WhatsApp. Private phone calls between the defendants were also investigated to uncover offers to manipulate the virtual currency market.
Prosecutors also revealed that Saitama, the largest company involved in various schemes, once had a market value of $7.5 billion due to token market manipulation and secret sales by its leaders.
The company's CEO Manpreet Kohli was arrested in the UK on Monday along with five other current or former employees, three of whom have pleaded guilty.
Other individuals residing overseas who were associated with virtual currency “market makers” who allegedly provided market manipulation services were also indicted.
Additionally, there is speculation that the FBI has created an Ethereum-based token, NextFund AI, to track bad guys.
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