US federal prosecutors have charged several cryptocurrency companies, including Gotbit and ZM Quant, with market manipulation and fraud. A total of 12 individuals linked to these entities have also been charged.

Charges of Market Manipulation

The US Justice Department has charged several cryptocurrency companies and 12 individuals associated with their operations. Companies Gotbit and ZM Quant are among those accused. In addition to criminal charges, the US Securities and Exchange Commission (SEC) has filed civil charges against these entities.

FBI Investigation and Sting Operation

The investigation involved a unique FBI operation that included creating a fake token to identify fraudulent activities. The operation has been described as unprecedented by investigators.

Market Manipulation Services

ZM Quant was offering market manipulation services for cryptocurrencies. Baijun Ou, Ruiqi Liu, and two unnamed associates are accused of artificially increasing trading volumes and prices to profit themselves. These illicit services were privately offered to certain clients. Among the schemes was an incident with the Saitama token, where its price was artificially inflated using a private Telegram chat, and trading volumes were boosted on the BitMart exchange. Meanwhile, Gotbit is accused of artificially boosting the trading volume of the Robo Inu token to $1 million.

This case highlights the efforts of law enforcement agencies to combat illegal operations in the cryptocurrency market. The charges against the companies and individuals serve as a reminder of the importance of accountability and transparency in the rapidly evolving digital asset industry.