Recently, federal prosecutors have charged three cryptocurrency firms and 15 individuals, unveiling significant market manipulation.
Companies Involved in Manipulation
The firms Gotbit, ZM Quant, and CLS Global were involved in the scheme by employing fictitious trading strategies to inflate crypto token values. This manipulation gave investors the false impression of sustainable demand.
Case Details
Gotbit, an AR app developed by Aleksei Andriunin, played a key role in the operation. Andriunin was arrested in Portugal, and two other staff members, Fedor Kedrov and Qawi Jalili from Russia, were also charged.
Authorities' Actions
FBI's operation included the creation of the token NexFundAI to monitor manipulations. Before any harm could come to retail investors, token trading was disabled.
The case highlighted the complexities and urgency of tackling cryptocurrency market manipulations and the need for stringent oversight of such operations.