• 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

OKX to Introduce New Perpetual Futures Linked to Brent and WTI Crude

chest

OKX plans to launch new perpetual futures contracts linked to Brent and WTI Crude in collaboration with ICE, aiming to bridge traditional finance with digital trading.

user avatarKaterina Papadopoulou

HYPE as a Leading Indicator for Altcoin Momentum

chest

HYPE is viewed as a key indicator for altcoin momentum, signaling a return of risk appetite in digital assets.

user avatarMaya Lundqvist

Introduction of HIP4 Enhances Trading Flexibility

chest

The introduction of HIP4 allows for outcome-based trading, enhancing the trading strategies available on Hyperliquid.

user avatarLeo van der Veen

Hyperliquid Transforms into a Financial Supercenter

chest

Hyperliquid is evolving from a trading platform into a comprehensive financial infrastructure for the crypto economy.

user avatarLi Weicheng

Bitcoin Price Falls Below $78,000 Amid Cautious Options Trading

chest

Bitcoin's price fell back below $78,000 following a rejection near recent local range highs, leading to cautious positioning among options traders.

user avatarAisha Farooq

Solana Faces Market Challenges as It Struggles to Keep Up with Ethereum

chest

Market expert Dominic Basulto identifies three key reasons for Solana's underperformance compared to Ethereum, including its association with meme coins, struggles in building a mobile-first ecosystem, and limited ETF momentum.

user avatarTenzin Dorje

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.