Hold onto your hats, folks, because the FBI has just taken a ride on the crypto rollercoaster! In a move straight out of a thriller novel, the FBI created its very own digital token to sniff out some serious shenanigans in the crypto world.
Picture this: three crypto companies and a whopping 15 individuals have been slapped with charges for pulling off some mind-boggling fraud and market manipulation. The US Federal Bureau of Investigation took the bull by the horns and launched a one-of-a-kind investigation, complete with their own shiny digital token, to catch the bad actors in the act.
The spotlight is on Gotbit, ZM Quant, and CLS Global, along with their top brass and employees. This crackdown has already seen four folks behind bars, five ‘oops, I did it' guilty pleas, and a jaw-dropping $25 million in crypto seized. Can you say “busted”?
Acting US Attorney Joshua Levy didn't mince words, calling out these defendants for orchestrating fake trades to pump up the trading volumes of various tokens, leaving unsuspecting investors holding nothing but air.
In a tale that could give you goosebumps, the FBI launched a faux crypto company called NexFundAI. This operation cooked up a token on the Ethereum blockchain and dangled it in front of the accused companies, daring them to manipulate it. But they had to be quick, as the FBI had its eyes peeled to keep retail investors from diving in before the game was over.
Of course, the plot thickens with the SEC jumping into the fray with related civil cases. Enter Saitama, whose market value skyrocketed to a jaw-dropping $7.5 billion, thanks to some sleight of hand by its CEO, Manpreet Singh Kohli. Kohli found himself in hot water and behind bars in the UK.
Then there's Gotbit's CEO, Aleksei Andriunin, who got nabbed in Portugal, while two of his sidekicks in Russia are also staring down the barrel of charges. It's been a whirlwind from 2018 to 2024, with Gotbit allegedly tangled up in “wash trading” and other sneaky moves to give token trading volumes a little extra boost.
And if that wasn't enough, others involved in these market-making escapades, like Liu Zhou and Riqui Liu, are also facing a legal storm. The crypto world is buzzing, and you can bet this saga is far from over. Stay tuned, because there's no telling what twist will come next in this crypto caper!
