The FBI created a cryptocurrency, NexFundAI, as part of an investigation into price manipulation in crypto markets. This led to charges against 18 individuals and entities for fraud and market manipulation. The defendants allegedly inflated token prices and conducted “wash trades” to falsely show active trading.
Three market makers—ZMQuant, CLS Global, and MyTrade—were involved in these schemes, unaware that NexFundAI was an FBI creation. The DOJ has recovered $25 million from fraudulent activities, which will be returned to investors.
Read more – https://www.theverge.com/2024/10/10/24267098/fbi-coin-crypto-token-nexgenai-sec-doj-fraud-investigation
