After investigation, the FBI directed for the first time to create a new digital token to help authorities help criminals.
Federal prosecutors in Boston alleged gotbit, ZM Quant, CLS Global, and leaders and employees of these and other companies, which resulted in four arrests, five people pleading guilty in agreements and confiscated more than $25 million (roughly roughly (roughly roughly roughly) )rupee.
Acting U.S. Attorney Joshua Levy said the defendants engaged in fake transactions artificially exaggerated the transaction volume of various cryptocurrency tokens before selling them, “having innocent investors holding bags.” .”
“In this case, new era technology, cryptocurrencies will encounter old school fraud, in which case the ‘pump and dump’ plan is as old as the stock market,” Levy told reporters.
As part of the investigation, the FBI directed the creation of a cryptocurrency company, Nexfundai, which has a token for the Ethereum blockchain, and prosecutors say ZM Quant, CLS Global and another company, MyTrade, agreed to help manipulate the manipulation.
Authorities say the tokens were traded, but they monitored carefully to minimize the risk that retail investors might buy before banning the transaction. The Securities and Exchange Commission has also filed related civil cases.
Prosecutors say Saitama, the largest company, had a market value of $7.5 billion (about Rs 62,971 crore) at one point after its leadership began manipulating transactions of its tokens and secretly sold them. they.
Its CEO Manpreet Kohli was arrested in the UK on Monday. Five other current or former employees were also charged and three pleaded guilty.
Others accused were Gotbit’s CEO Aleksei Andriunin, a cryptocurrency “market maker” who lives in Russia and Portugal. He was arrested in Portugal on Tuesday. Two of his company’s employees in Russia have also been charged.
Prosecutors said Gotbit conducted “Wash Trading,” a form of fake transactions, and marketed operations on behalf of several cryptocurrency customers to help artificially inflate its tokens. Trading volume.
Four other people working in cryptocurrency “market makers” said prosecutors said market manipulation services were provided to customers.
They are Liu Zhou, the founder of market maker Mytrade, who, according to court documents, agreed to plead guilty. Riqui Liu from the UK, and Baijun Ou from Hong Kong, both worked at ZM Quant; Andrey Zhorzhes from the United Arab Emirates, an employee of CLS Global.
They were unable to comment immediately.
Others accused were Michael Thompson of Virginia, who worked for a cryptocurrency company called VZZN, founded by former Saitama employees, and Bradley, Florida Bradley Beatty said prosecutors said fraudulently promoted his cryptocurrency company Lillian Finance.
©Thomson Reuters 2024
