|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
The DOJ Targets Wash Trading in the Crypto Industry with a Novel Sting Operation
Oct 10, 2024 at 06:02 am
The crypto industry is no stranger to market manipulation, where token prices are often artificially influenced through practices such as wash trading
The Federal Bureau of Investigations (FBI) employed a unique tactic to apprehend the defendants in a crypto pump and dump scheme, according to a statement from Jodi Cohen, the special agent in charge of the FBI's Boston office.
The Bureau created its own cryptocurrency token and a fake company to ensnare the alleged crooks in what prosecutors described as a "first-of-its-kind" investigation. The investigation uncovered a century-old scheme.
The Justice Department case targets three market makers and their employees, who prosecutors allege offered wash trading services in exchange for payment, a practice that can artificially inflate trading volumes and boost token prices.
The indictment details how one of the defendants described himself as the "mastermind" behind the operation, explaining that his company used bots to simultaneously buy and sell tokens on centralized exchanges to generate the trading volumes.
One of the defendants, who agreed to an in-person meeting in September, requested an upfront payment of $2,000 to carry out the wash trades.
As of last week, the market maker's bots were still executing millions of dollars' worth of wash trades before being deactivated at the request of law enforcement.
According to the crypto price tracker DEX Screener, the NexFundAI token is still actively trading with a market cap of around $237,000.
Several of the defendants were also employed by Saitama, a Massachusetts-incorporated cryptocurrency firm that manipulated its token price to create a market value of $7.5 billion.
Saitama engaged one of the alleged market makers, Gotbit, to artificially inflate the value of its token, while Saitama executives secretly sold their tokens, generating tens of millions of dollars in profits, the DOJ alleges.
In 2019, a Gotbit co-founder told CoinDesk that his business was "not entirely ethical." Several of the defendants operated internationally, including in Portugal and Russia, and five have already pleaded guilty or agreed to plead guilty.
Along with the DOJ indictment, the Securities and Exchange Commission also filed civil complaints alleging securities law violations against the market-making operations.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- 1 BNB 3 Uses, Now Holding 30 BNB Financial Management Mining Can Catch Up with the Original Financial Management Mining Income of 100 BNB
- Oct 10, 2024 at 12:15 pm
- 30 BNB is your free worker, which can easily help you earn the salary of an ordinary business manager every month. The monthly income is as high as 5000-10000 or more.
-
- FBI Created Ethereum-Based Token in Investigation Into Market Manipulation and Sham Trading in Crypto Sector
- Oct 10, 2024 at 12:15 pm
- In a groundbreaking operation, the U.S. Federal Bureau of Investigation (FBI) has exposed an alleged widespread crypto market manipulation scheme involving 18 individuals and four major crypto firms.