• 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

a year 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

ChangeNOW: Fast and Efficient Crypto Swaps Without KYC

chest

ChangeNOW is one of the fastest no KYC crypto exchange platforms, completing 98% of swaps in under five minutes.

user avatarMaya Lundqvist

Privacy-Focused Crypto Swaps Gain Popularity Amidst KYC Requirements

chest

Privacy-focused crypto swaps are gaining traction as alternatives to major exchanges that require extensive KYC procedures.

user avatarTenzin Dorje

Godexio: Leading the Way in Unrestricted Crypto Swaps

chest

Godexio has established itself as the leading platform for unrestricted cryptocurrency swaps, allowing users to exchange any amount without the need for account creation or sharing personal information.

user avatarLi Weicheng

Hyperliquid Token Sees 23% Surge Driven by DeFi Interest

chest

Hyperliquid (HYPE) experiences a 23% price increase, driven by interest from DeFi investors and traders.

user avatarBayarjavkhlan Ganbaatar

Bitcoin Dominance Shows Potential for Altcoin Recovery

chest

Bitcoin Dominance (BTCD) is forming a head and shoulders pattern, indicating a possible shift in capital flow towards altcoins.

user avatarMohamed Farouk

GoTyme Launches Crypto Services in the Philippines

chest

Philippines digital bank GoTyme has launched crypto services in partnership with US fintech firm Alpaca, allowing users to buy and store 11 crypto assets directly in the GoTyme app.

user avatarElias Mukuru

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.