The FBI launched their own token, NexFundAI, as part of an operation aimed at uncovering fraudulent schemes in the cryptocurrency market. The token was registered through a shell company, and contracts were signed with market makers Gotbit, ZM Quant, CLS Global, and MyTrade to facilitate operations. The main goal of the operation was to identify cases of artificially inflating trading volumes and market manipulation, with the intent to press charges against the responsible parties.
As a result of the investigation, four companies and 14 individuals were charged with fraud, market manipulation, and wash trading. Among them was Gotbit’s CEO, Andrey Andryunin, who was arrested on October 8 in Portugal and is currently awaiting extradition to the U.S. The FBI controlled the trading of NexFundAI to minimize the risks for retail investors before banning its trading altogether.
Additionally, authorities seized over $25 million in cryptocurrency and deactivated several trading bots that were involved in wash trades with around 60 different cryptocurrencies. The FBI’s operation dealt a significant blow to fraudulent schemes in the crypto sphere, highlighting the importance of government oversight in the digital asset industry.
