Federal prosecutors charged three enterprises and 15 individuals on Wednesday, targeting fraudulent activities in the cryptocurrency exchange space.
The charged entities, including Gotbit, ZM Quant, CLS Global, and some individuals, have been accused of executing a systematic pump-and-dump fraud aimed at defrauding investors by manipulating the prices of cryptocurrencies.
These arrests, alongside four and five others who compiled through plea bargains, highlight the increased enforcement in the DIGITAL CURRENCY market.
Authorities confiscated over $25 million in cryptocurrencies as an evasive measure against manipulating the markets. To conduct this investigation, the FBI adopted new approaches, such as promoting the creation of an FBI virtual currency to expose the malpractice.
This token was recently unveiled as NexFundAI, which is critical in exposing these companies and their counterparts’ manipulation strategies.