Originally published on: October 09, 2024
In a recent development, the SEC, FBI, and DOJ have joined forces to take down fraudulent cryptocurrency firms operating in the United States. The crackdown resulted in civil suits being filed against three market makers in the crypto space and associated individuals in the District Court of Massachusetts.
The charges, filed on Oct. 9, targeted Gotbit Consulting, ZM Quant Investment, and CLS Global, along with nine individuals involved in the fraudulent activities. Gotbit Consulting and its marketing director, Fedor Kedrov, are accused of market manipulation through wash trading on behalf of individuals promoting cryptocurrencies called Saitama and Robo Inu.
Vy Pham, the organizer of the crypto projects, was charged separately with various offenses, including unregistered securities offerings and market manipulation. Additionally, ZM Quant Investment and CLS Global faced similar charges in relation to the NexFundAI coin. The FBI, which created the NexFundAI cryptocurrency, was also involved in the investigations.
The FBI has listed several cryptocurrencies, including Saitama, SaitaRealty, SaitaChain, Robo Inu, VZZN, Lillian Finance, and NexFundAI, under investigation. The Justice Department revealed a total of 18 people facing charges in the combined cases, along with one additional company, MyTrade MM, which allegedly offered services to NexFundAI.
The crackdown on fraudulent cryptocurrency activities is a significant step towards maintaining the integrity of the crypto market. Stay informed about the latest developments in crypto laws and guidelines to make informed decisions for your crypto ventures. Subscribe to our newsletter for weekly updates on the crypto landscape.
