• 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

SpaceX Pre-IPO Tokenized Offerings Canceled Due to Allocation Issues

chest

Several crypto platforms canceled SpaceX pre-IPO tokenized offerings due to failed share allocation, leading to refunds for customers.

user avatarMiguel Rodriguez

Arbitrum Governance Proposes Major Funding for Foundation

chest

Arbitrum governance is evaluating a funding proposal for the Arbitrum Foundation, seeking 16 million in real-world assets, 1,700 ETH, and 230 million ARB tokens to support its operations for another year.

user avatarLuis Flores

Crypto Scammers Target 2026 World Cup Fans

chest

TRM Labs warns of emerging crypto scams targeting fans of the 2026 World Cup, including fake ticketing and speculative tokens.

user avatarArif Mukhtar

Ethereum Researchers Introduce SPHINCS for Quantum-Resistant Signatures

chest

Ethereum researchers introduce SPHINCS, a post-quantum signature design for enhancing wallet security against quantum computing threats.

user avatarDavid Robinson

Bitcoin Faces Major Liquidation Event Amid Price Fluctuations

chest

Bitcoin traders faced significant liquidations as the price fluctuated sharply, resulting in nearly $980 million in liquidations within 24 hours.

user avatarMaria Gutierrez

Sky Governance Forum Emphasizes Editorial Policy

chest

The Sky Governance Forum has established a strict editorial policy that focuses on accuracy, relevance, and impartiality.

user avatarAndrew Smith

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.