18 companies and individuals have been indicted related to Allegations of fraud and manipulation in the virtual currency market.
The charges, unsealed in Boston, involve leaders of four crypto companies, four crypto financial services companies known as “market makers,” and employees of those companies. United States Attorney's Office for the District of Massachusettssaid on Wednesday (October 9). press release.
4 The defendant pleaded guilty, another defendant agreed to plead guilty, and three others were arrested by authorities this week.according to the release.
In addition, Over $25 million in cryptocurrencies have Multiple trading bots seized According to the release, it has been disabled..
According to the indictment, the defendants, who founded the virtual currency companies Saitama, Robo Inu, VZZN, and Lilian Finance, used sham transactions to make their tokens appear to be good investments. inside the token (“Wash Trading”), making false statements regarding the Tokens, according to the release.
of Market makers — ZM Quant, CLS Global, MyTrade MM And Gotbit — teeth be indicted for wash trading and/or colluding to do so;according to the release.
“Wash trading has long been prohibited in financial markets, and cryptocurrencies are no exception,” said Acting U.S. Attorney. Joshua Levy said in a release. “These are cases where cryptocurrencies, an innovative technology, ran into problems. a century ago Scheme — pump and dump. Today's message is that if you make false statements to deceive investors, it's fraud. period. “
In a pump-and-dump scheme, the manipulator spreads rumors, a flurry of buys drives up the price, then the manipulator sells and the price collapses, PYMNTS reported in an August 2022 overview. Virtual currency market manipulation.
in wash trading. An individual or group purchases tokens, gradually resells them at higher prices, and then dumps them.according to the report.
As part of a government investigation, According to a press release on Wednesday, the FBI has established a token with a cryptocurrency company.
“The F.B.I. very Identify and destroy unique cryptocurrency tokens and companies and Please bring these fraud suspects to justice. ” jody coensaid the special agent in charge of the FBI's Boston division in a release.
