• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FBI Uncovers Fraud in the Crypto World — Three Firms Charged

user avatar

by Giorgi Kostiuk

2 years ago

The US Federal Bureau of Investigation (FBI) has conducted an unprecedented investigation, resulting in the charging of three crypto companies and several individuals with fraud and market manipulation.

Investigation Details

The FBI created a new digital token to expose criminal activities within the crypto sector. This led to charges against Gotbit, ZM Quant, and CLS Global, as well as their leaders and employees.

Charges and Arrests

Federal prosecutors in Boston announced four arrests, five guilty pleas, and the seizure of over $25 million in cryptocurrency. Joshua Levy noted that the defendants engaged in sham trades to artificially inflate token trading volumes.

Modern technology combined with old-school fraud has led to new 'pump and dump' schemes.Joshua Levy

Further Actions

The investigation also involved the FBI setting up a company called NexFundAI to monitor token manipulation. The SEC has filed civil suits against the companies involved.

The case continues to unfold with arrests and charges against key figures, highlighting the importance of transparency and compliance in the crypto space.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Understanding the Risks of Synthetic Perpetual Markets

chest

Traders in synthetic perpetual markets must be aware of the risks associated with derivatives trading, including lack of ownership and potential price volatility.

user avatarMaria Fernandez

Hyperliquids SPCX Perpetual Market Offers Flexible Trading Options

chest

Hyperliquids SPCX perpetual market offers a synthetic trading alternative to tokenized SpaceX allocations, enabling traders to speculate without physical asset delivery.

user avatarGustavo Mendoza

SpaceX Tokenized Share Campaign Faces Refund Issues

chest

A tokenized SpaceX share campaign has been canceled, leading to refunds and highlighting challenges in sourcing underlying shares.

user avatarRajesh Kumar

Kraken to Introduce CFTC-Regulated Perpetual Futures for US Traders.

chest

Kraken is set to introduce CFTC-regulated perpetual futures for eligible US professional traders through its acquisition of Bitnomial.

user avatarMiguel Rodriguez

Kraken Expands Crypto Trading with Pre-IPO Futures for AI Companies

chest

Kraken has launched new perpetual futures contracts for private AI companies OpenAI and Anthropic, allowing traders to gain synthetic exposure before they go public.

user avatarLuis Flores

Ethereum Faces Potential Third Consecutive Negative Quarter

chest

Ethereum is on track for a third consecutive negative quarter, raising concerns among traders despite strong staking signals.

user avatarArif Mukhtar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.