A recent FBI sting, Operation Token Mirrors, used a fake crypto project to reveal crypto wash trading by ZM Quant, CLS Global, and MyTrade. Kaiko, a blockchain research firm, supported these findings, highlighting the manipulation extent.
The FBI and federal prosecutors have targeted Gotbit, ZM Quant, CLS Global, and 15 individuals in a sting operation focusing on crypto market manipulation. Extensive evidence, including teleconferences and interviews, highlight sham trading practices. These efforts led to arrests and over $25 million in crypto seizures, signaling potential broader crackdowns on manipulative practices.
US prosecutes 14 individuals and four crypto firms for market manipulation. ZM Quant, a firm involved, allegedly conspired to manipulate trading volumes and prices, violating market integrity. Executives from Gotbit, CLS Global, and MyTrade also face charges. Some individuals have pleaded guilty, signaling potential cooperation with authorities.
US prosecutors in Boston charged Gotbit, ZM Quant, CLS Global, and MyTrade with market manipulation and sham trading in cryptocurrency. Arrests have been made abroad, and five individuals have pleaded guilty or will do so. This prosecution is considered a significant milestone in regulating the crypto market.
Prosecutors have charged Gobit and ZM Quant, along with their employees, for allegedly providing market manipulation services to crypto projects aiming to inflate trading volumes artificially.
