Bitcoin

In the latest crackdown, federal prosecutors have filed <a href="https://www.justice.gov/usao-ma/pr/eighteen-individuals-and-entities-charged-international-operation-targeting-widespread" rel="noopener noreferrer nofollow">charges</a> against three cryptocurrency firms and fifteen people. In this investigation, the FBI found extensive amounts of market manipulation. This case was the first time the FBI created a digital token with the ultimate aim of uncovering scandals in the cryptocurrency market.<h2 id="header-0">Companies Involved in Manipulation</h2>The firms involved in the scheme are Gotbit, ZM Quant, and CLS Global. The prosecutors said that these companies employed fictitious trading strategies to pump up the value of crypto tokens. Such manipulation created the investors’ perception that these tokens have sustainable demand. This was carried out by Gotbit, an AR app developed by Aleksei Andriunin and others, the initiators of the operation. Andriunin was arrested in Portugal, while two more staff members, Fedor Kedrov and Qawi Jalili, based in Russia, were also charged.ZM Quant and CLS Global also participated in illegal activities. They agreed to manipulate a token created by NexFundAI, a company set up by the <a href="https://cryptotale.org/5m-in-crypto-seized-by-fbi-in-north-carolina-fraud-case/" rel="noopener noreferrer nofollow">FBI</a>. Authorities monitored the trading of this token to reduce the risk to retail investors. Before the manipulation could harm anyone, token trading was disabled.<a href="https://cryptotale.org/fbi-charges-three-crypto-firms-and-15-people-for-fraud/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

FBI Charges Three Crypto Firms and 15 People for Fraud

Table of Contents

CryptoTale

Other articles published on Oct 10, 2024

How BaseSwap's Smart Routing Works for You

How Blockchain is Redefining Credit and Factoring Services

ZachXBT vs. Murad Mahmudov: Doxxing Debate Shakes Crypto Twitter

SUI experiences over 26% decrease in volume

Crypto Losses in 2024 Soar to $2.11 Billion, Surpassing 2023’s Annual Total: Report

Shiba Inu Crisis: Shibarium Loses Investor Confidence

Join our free newsletter for daily crypto updates!