FBI Launched Fake Token ‘NexFundAI” To Expose Crypto Scams

With the expansion of technology, crypto scams are also rising in the crypto industry, creating an urgency for government entities like the FBI to act smarter. In one such attempt, the Federal Bureau of Investigation has played a big mind game, launching a fake crypto token called NexFundAI to expose large-scale crypto crimes.

This news came to attention after this secret operation turned successful with the identification and arrest of scammers. Meanwhile, the US election rallies and speeches are in full action with promises of crypto regulations. Recently, even the Tesla owner joined Trump’s rally, showing support for the ex-president with the Elon Musk speech.

FBI Introduced NexFundAI To  Lure Market Fraudsters

The Pump-and-dump crypto scams in the market are rising exponentially day by day. As a result, the FBI had to make smart decisions to lure the scammers with a fake token. The designated team launched an Ethereum-based token called NexFundAI, which instantly caught the attention of scammers.

These pump-and-dump scams involved the manipulation of the token prices in different ways. Initially, they boost the price to attract new investors and crash the market after some time. This makes them heavy gains, leaving the investors at a loss. With this string operation, the FBI has identified 18 individuals, including four crypto companies, four market-making firms, and their employees, as revealed in the press release.

Wow, this case get even more insane

The FBI created their own coin called “The NexFundAI Token” and enlisted the services of the firms indicted to catch them

“The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and…

— db (@tier10k) October 9, 2024

These scammers have collectively inflated the value of more than 60 tokens, including the Saitama token, which at one point had a market value of $7.5 Billion. However, they had also hired market manipulators, including a few busted in this sting operation.  In another, the FBI recovered 5 Billion in pig-butchering scams earlier, showing their active role in busting these crimes.

How did This Federal Bureau of Investigation Sting Operation work?

The team took all the right measures to launch this NexFundAI token, a Security. After a decent time, the scammers also interacted with the team to help boost the token. One defendant, who calls himself the mastermind, revealed how his company uses bots to increase the trading volume by buying and selling simultaneously on the centralized crypto exchanges.

The Federal Bureau of Investigation got alert when this mastermind asked for an in-person meeting and $2,000 in upfront payment. With this, the DOJ presented these eighteen individuals in front of the Judge on Wednesday, where some have already pleaded guilty. It includes four market-making firms Gotbit, ZM Quant, CLS Global, and MyTrade. Out of these, ZM Quant and My Trade are relatively popular and were involved in many pump-and-dump crypto scams, where they pumped the token price with wash trading.

Not only this, but the FBI has also seized more than $25M in crypto along with various crypto bots. These bots were the main tools for market manipulation and crypto scams. These individuals could be sentenced to 20 years for wire fraud and crypto market manipulation.

The NexFundAI is still available in the market and is trading at $0.00000002066 with a market cap of $86K per DEXScreener. It also has $3.6M in trading volume, which has decreased significantly since this FBI sting operation revelation.

DOJ is Stringent Around Around Crypto Scams

The Department of Justice (DOJ) is stringent for crypto scams. It is also important as this year, the world has already lost $679 million in the first half of 2024. Not to forget the $230 Million loss in the WazirX hack.

This Federal Bureau of Investigation string was the DOJ’s biggest criminal prosecution against the finance service firms involved in market manipulation. Earlier, they also charged and convicted Avraham Eisenberg in April, who was involved in rigging the Mango Markets.

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Pooja Khardia

With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.

As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.