As a seasoned analyst with decades of experience in both traditional and digital markets, I’ve seen my fair share of market manipulations and fraudulent activities. However, this recent string of charges against cryptocurrency companies like Gotbit and ZM Quant is particularly noteworthy. The FBI sting operation, involving the creation of a fake token called “The NexFundAI Token,” is unprecedented in its scope and creativity. It’s a clear demonstration that regulators are getting smarter and more proactive in their pursuit of those who seek to undermine the integrity of our financial systems.
Federal authorities in the United States have accused several digital currency firms, such as Gotbit and ZM Quant, of carrying out market manipulation and fraudulent activities.
They have also targeted a total of 12 individuals who are linked to these entities.
The U.S. Securities and Exchange Commission has unveiled parallel civil charges.
Significantly, the probe encompassed an FBI covert operation that devised a fictitious token named “The NexFundAI Token” to deceive the swindlers into providing their unlawful services. This undercover operation, which was a key component of the investigation, is renowned for its extraordinary nature and innovation.
According to a statement from the SEC, they are thankful for the help provided by the FBI and the U.S. Attorney’s Office for the District of Massachusetts, as these entities simultaneously took criminal action, as stated in their announcement today.
Market-manipulation-as-a-service
ZM Quant was providing “trade intermediary” services within the cryptocurrency market. It is alleged that employees like Baijun Ou, Ruiqi Liu, and two other team members, who worked for this company, artificially inflated the trading volume and price of different cryptocurrencies to increase their personal wealth.
Illegal services that included market manipulation were being privately offered to some clients.
As a researcher, I uncovered evidence that suggests I was actively seeking investors to purchase cryptocurrencies through online marketing and messaging platforms. For example, it appears they manipulated the price of the Saitama token by using a private chatroom on Telegram. This channel seemed to be employed in artificially inflating the token’s trading volume on the BitMart exchange.
Currently, there are allegations that Gotbit inflated the trading volume of the Robo Inu token up to $1 million artificially.
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2024-10-10 00:08