For the first time in crypto market history, U.S. prosecutors have charged four companies and 14 individuals with market manipulation and sham trading.
Accused companies and individuals
The criminal charges involve companies like Gotbit, ZM Quant, CLS Global, and MyTrade. The accused include entities and individuals from countries like the U.S., Hong Kong, and the UK.
Illicit crypto activities
The accused allegedly engaged in conspiring to defraud investors, market manipulation, and creating fake transactions and inflated crypto prices. Gotbit has been previously linked to unethical practices and 'rug pull' scams.
Significance of the case
The case highlights the importance of regulating crypto markets and equating such requirements to traditional financial institutions. This is the first criminal action for such offenses.
The case demonstrates that crypto market manipulation is under the scrutiny of law enforcement and regulated similarly to traditional financial markets.