U.S. authorities have leveled historic charges against 18 individuals and companies for fraud and manipulation in the cryptocurrency market.

Investigation Details

The investigation, named 'Operation Token Mirrors,' exposed 'wash trading' used to deceive investors. This scheme, led by the cryptocurrency company Saitama, aimed to create artificial demand, inflating prices before selling at high rates. Among those charged are representatives of market-making firms: ZM Quant, CLS Global, MyTrade, and Gotbit. Over $25 million in cryptocurrency has been seized, with arrests made in several countries.

A New Twist on Old Schemes

Acting U.S. Attorney Joshua Levy highlighted that despite the innovative nature of cryptocurrency, fraud schemes remain unchanged. The crackdown shows that crypto markets are not beyond the reach of law, with regulators intensifying efforts to protect investors. FBI Special Agent Jodi Cohen emphasized the operation's focus on holding bad actors accountable.

Regulatory Fallout

Alongside criminal charges, the Securities and Exchange Commission (SEC) has filed civil complaints against some firms involved, including Saitama, Gotbit, CLS, and ZM Quant, for securities law violations. This case is expected to set a precedent for dealing with fraud and manipulation in the crypto market.

This major crackdown marks a pivotal moment in crypto regulation, sending a clear message that fraudulent activities will not go unchecked. Investors should remain vigilant as efforts to combat crypto fraud increase.