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The FBI has launched a new cryptocurrency called NexFundAI as part of its strategy to combat market manipulation in the crypto space. On Wednesday, a judge revealed a significant criminal case against 18 individuals and companies accused of artificially boosting crypto token prices.&nbsp;
The Department of Justice (DOJ) initiated its first criminal prosecution <a href="https://www.sec.gov/newsroom/press-releases/2024-166" target="_blank" rel="noopener noreferrer nofollow">against firms manipulating</a> the crypto market. The FBI created NexFundAI to investigate ZM Quant, CLS Global, and MyTrade for their role in market manipulation on the crypto market.
According to the DOJ, these defendants targeted a crypto firm valued at billions of dollars. The <a href="https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-information-in-cryptocurrency-investment-fraud-investigation" target="_blank" rel="noopener noreferrer nofollow">FBI created NexFundAI</a> to trap the alleged manipulators by posing as a legitimate cryptocurrency. Special Agent Jodi Cohen emphasized that this approach was unprecedented for the Bureau.
Market manipulation, such as wash trading, is common in the crypto industry. This occurs when traders fake buy and sell orders to create the illusion of demand. Analysts estimate that up to 50% of trading volume on some exchanges may be inflated.
The indictment details that three market makers offered wash trading services for payment, with one defendant labeling himself the “mastermind.” He used bots to inflate trading volumes, agreeing to meet with the FBI’s fake company while requesting an upfront payment of $2,000.
Several defendants were linked to Saitama, a crypto firm that manipulated its token to reach a market value of $7.5 billion. As of now, NexFundAI continues to trade actively, with a market cap of around $237,000.
The FBI’s launch of NexFundAI is a bold and innovative move to address the rampant issue of market manipulation in the cryptocurrency space. By taking such decisive action, the Bureau sets a strong precedent for accountability in the industry.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/10/04/fbis-ichcoin-investigation-uncovers-30-million-crypto-scam/" target="_blank" rel="noopener noreferrer nofollow">FBI’s ICHCoin Investigation Uncovers $30 Million Crypto Scam</a>
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FBI Launches NexFundAI Token to Combat Market Manipulation

The Crypto Times

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