FBI secretly launches its own token
October 10, 2024
The FBI launched its token, NexFundAI, to uncover fraudulent activities in the cryptocurrency market. As a result of the operation, the Boston Prosecutor's Office has charged 18 individuals and entities, including four major crypto companies — Gotbit, ZM Quant, CLS Global, and MyTrade — with market manipulation.
Money laundering scheme
The defendants artificially inflated the value of over 60 tokens, including Saitama Token, whose market capitalization reached $7, 5 billion. The perpetrators made false statements and employed various tactics to mislead investors.
Crypto companies hired market makers, such as ZM Quant and Gotbit, to conduct fake transactions using multiple wallets. This created the illusion of high trading volumes, making the tokens more attractive to customers.
Authorities' actions
Authorities confiscated more than $25 million in cryptocurrency and deactivated several trading bots involved in the manipulations. Some of the defendants have pleaded guilty, while others were arrested in the U.S., U.K., and Portugal.
Potential punishment
The criminals face up to 20 years in prison for market manipulation and wire fraud. This case serves as a reminder of the risks in the cryptocurrency market and the importance of exercising caution when investing.