FBI's Secret Cryptocurrency: A Bold Move Against Crypto Fraud Revealed!

FBI Develops NexFundAI to Combat Crypto Fraud

The FBI has taken significant steps in the fight against price manipulation in the cryptocurrency market by creating an Ethereum-based token known as NexFundAI. This initiative was revealed in a government announcement, indicating a proactive approach to tackle fraudulent activities within the crypto space.

Investigation Results

As a result of this investigation, the Securities and Exchange Commission (SEC) has charged three market makers and nine individuals for participating in schemes aimed at inflating the prices of specific crypto assets. The Department of Justice (DOJ) has also charged 18 individuals and entities for what it describes as “widespread fraud and manipulation” in the crypto markets.

Allegations Against Defendants

The defendants allegedly engaged in making false claims about their tokens and executed wash trades to create a false perception of an active trading environment. The market makers involved—ZMQuant, CLS Global, and MyTrade—were reportedly unaware that NexFundAI was an FBI creation when they carried out these actions.

“What the FBI uncovered in this case is essentially a new twist to old-school financial crime,” stated Jodi Cohen, special agent in charge of the FBI’s Boston division.

Inside Information

Liu Zhou, a market maker associated with MyTrade MM, allegedly boasted to promoters of NexFundAI about their ability to control trading activities, suggesting they could easily conduct insider trading.

Trading Activity and Restitution

An FBI spokesperson mentioned that there was limited trading activity on NexFundAI, and Joshua Levy, acting US attorney for the District of Massachusetts, confirmed that trading on the token has been disabled. The DOJ has reportedly managed to secure $25 million from fraudulent proceeds, which will be returned to affected investors.