Cryptocurrency market makers CLS Global, MyTrade, and ZM Quant, and 15 other organizations and associated individuals have been arrested and charged over large-scale digital asset market manipulation schemes following an operation led by the FBI, which was able to crack down on the firms and individuals through the creation of the fake cryptocurrency token and firm NexFundAI, The Hacker News reports.
Fraudulent crypto token trades have allegedly been conducted by the indicted firms and individuals to lure more investors, according to the Justice Department, which noted the sequestration of over $25 million worth of cryptocurrency and several wash trading bots as part of the operation. "Today's enforcement actions demonstrate, once more, that retail investors are being victimized by fraudulent activity by institutional actors in the markets for crypto assets. With purported promoters and self-anointed market makers teaming up to target the investing public with false promises of profits in the crypto markets, investors should be mindful that the deck may be stacked against them," said Securities and Exchange Commission Division of Enforcement Deputy Director Sanjay Wadhwa.
