US government charges notable crypto companies, individuals for market manipulation and fraud

• The US government charged three crypto companies and 15 individuals for crimes of market manipulation of several cryptocurrencies.
• Defendants include crypto companies Gotbit, ZM QUANT, CLS Global, MyTrade, and their employees and accomplices.
• The FBI allegedly created their token named The NextFund AI token to get hold of the bad actors.

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

US government charges Gotbit, ZM Quant and CLS Global and founders for market manipulation

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

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

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

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

The investigation uncovered several online conversations between the workers and accomplices on platforms like 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 leadership manipulating its token market and covertly selling it.

Its CEO, Manpreet Kohli, was arrested in the UK on Monday, alongside five other current or former employees, three of whom have pleaded guilty.

Other individuals living abroad who were associated with cryptocurrency "market makers" who allegedly offered market manipulation services have also been charged.

Additionally, speculations suggest that the FBI was responsible for creating the Ethereum-based token NextFund AI in an attempt to track down the bad actors.

"The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice," a post by dB on X stated.