18 Crypto Market Manipulation Entities Charged by US Government

Key Points:

• U.S. authorities charged 18 people and three firms with crypto market manipulation, seizing over $25 million.
• The FBI, in a first-of-its-kind move, created a fake digital token to expose illegal activities.

According to Reuters, federal prosecutors accused three firms and 15 individuals of crypto market manipulation and widespread fraud.

Read more: IcomTech Ponzi Scheme Exposed With Scam Tokens Causing Losses

U.S. Charges 18 in Major Crypto Market Manipulation Case

Companies such as Gotbit, ZM Quant, and CLS Global have been accused of creating the illusion of cryptocurrency token value while misleading investors. The probe, driven by the Federal Bureau of Investigation, marked a first in law enforcement in creating a digital token to track illicit activities.

The investigation started with tips from the SEC about suspicious activities involving a Boston-based company called Saitama, which unravelled an elaborate fraud scheme.

In the case, regulators allege that Saitama’s management hired market makers to pump up the value of its token for a brief period, giving the company a valuation of $7.5 billion. Regulators have charged six individuals in connection with Saitama, including its CEO, Manpreet Kohli, who was arrested in the United Kingdom. Three have pleaded guilty.

Read more: Select Binance Fraud Investigation Helps Trace $47.6M in Gaming Scam

FBI Uses Digital Token to Uncover Crypto Market Manipulation Scheme

As part of the sting operation conducted by the FBI, a cryptocurrency company called NexFundAI, even with a token on the Ethereum blockchain, was opened. ZM Quant, CLS Global, and MyTrade agreed to create another case of crypto market manipulation. By closely monitoring and finally disabling the trading, prosecutors were able to save retail investors from falling prey to that token.

Besides that, high-profile arrests were of Aleksei Andiunin, the CEO of Gotbit, arrested in Portugal. The company has been accused of fraudulently washing trades from 2018 to 2024 to make it look like there was a lot of trading of tokens. Two of his employees in Russia were also charged with crypto market manipulation.

The rest of the individuals charged are market makers and executives of firms MyTrade, ZM Quant, and CLS Global. MyTrade’s founder, Liu Zhou, has agreed to plead guilty. Over $25 million in cryptocurrency was seized as part of the crackdown. The SEC likewise filed civil cases as part of the investigation.

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