US government accuses notable crypto companies, individuals of market manipulation and fraud

• The US government has indicted three crypto companies and 15 individuals for market manipulation of several cryptocurrencies.
• The defendants include crypto companies Gotbit, ZM QUANT, CLS Global, MyTrade and their employees and accomplices.
• The FBI allegedly created its token called The NextFund AI token to get hold of bad actors.

The US government on Wednesday took legal action against three cryptocurrency firms and 15 individuals for market manipulation and fraud, including artificially inflating cryptocurrency prices to make a profit.

US government accuses Gotbit, ZM Quant and CLS Global and founders of market manipulation

US prosecutors have charged three cryptocurrency firms, including Gotbit, ZM QUANT and CLS Global, along with 15 people in a landmark case of market manipulation and fraudulent trading in the crypto industry. The case, filed in a district court in Boston, Massachusetts, has already gained widespread attention.

Some of the manipulated tokens involved include VZZN, NextFund AI tokens, and Saitama tokens. The filing indicates that the defendants advertised seemingly legitimate services on ZM QUANT, secretly offering illegal services to customers.

They also carried out manipulative trades, increasing the trading price and volumes of these cryptocurrencies to attract the attention of investors.

These firms also caused certain exchanges to lower trading fees, hiding their profits in multiple wallets.

The investigation revealed several online conversations between workers and accomplices on platforms such as Telegram and WhatsApp. Private calls between the defendants were also investigated to reveal offers to manipulate the crypto market.

Prosecutors also revealed that Saitama, the largest company involved in various schemes, once had a market value of $7.5 billion due to management manipulating the token market and selling it covertly.

Its CEO, Manpreet Kohli, was arrested in Britain on Monday, along with five other current or former employees, three of whom pleaded guilty.

Other individuals living abroad who were associated with cryptocurrency “market makers” who allegedly provided market manipulation services were also charged.

Additionally, speculation suggests that the FBI was responsible for creating the NextFund AI token based on Ethereum in an attempt to track down bad actors.

“The FBI has taken the unprecedented step of creating its own cryptocurrency token and company to identify, disrupt and bring to justice these alleged fraudsters,” said a post by dB on X.