In a major crackdown on crypto market manipulation, federal prosecutors have filed charges against three companies and 15 individuals. The accused include Gotbit, ZM Quant, and CLS Global, all facing allegations of sham trading and market manipulation.Â
FBI’s Unique Tactic Exposes FraudÂ
For the first time, the FBI created a fake crypto token to catch the accused in the act of inflating its value. Gotbit, a well-known market maker, along with CLS Global and ZM Quant, were implicated. Prosecutors claim to have solid proof of their fraudulent actions.Â
One set of charges even includes a recording of ZM Quant leaders discussing their scheme in clear terms. So far, five defendants have pleaded guilty, with four arrests made and over $25 million in cryptocurrency seized.Â
Gotbit CEO Arrested in PortugalÂ
Gotbit CEO Aleksei Andriunin was arrested in Portugal after investigators uncovered a 2019 YouTube interview where he admitted to inflating token trade volumes. The interview is now part of the growing body of evidence.Â
With such extensive proof, the sting may signal more severe actions to come. Whether this is a one-time operation or the start of a wider crackdown remains to be seen.Â
