FBI Sting Created NexFundAI Crypto Token To Bring Down Fraud Scheme
The FBI has charged eight companies for operating an alleged pump-and-dump scheme after creating a fake crypto token, NexFundAI, as part of an undercover sting.
Crypto companies Saitama, Robo Inu, VZZN and Lilian Finance, and market makers Gotbit, ZM Quant, CLS Global and MyTradeMM were all accused of working together to manipulate the prices of over 60 low cap coins.
Suits against these companies were filed on Oct. 9 by the US Securities and Exchange Commission ( SEC ).
FBI Launches NexFundAI After SEC’s Saitama Tip Off
The FBI received a tip off from the SEC that Saitama was engaging in market manipulation to increase its token’s price and make investors believe that there was interest in the project.
Eventually, the investigation into the project led to the launch of NexFundAI, a fake token created by the FBI to observe how these on-demand market makers operated.
The fake crypto only traded for 24 hours on May 31. During this period, it generated $4,600 in artificial trading volume.
The sting worked, with 18 individuals across the accused companies being charged with fraud. So far, 4 of the accused fraudsters have pleaded guilty. Multiple wash trading bots, which are software scripts that trade against themselves to create the illusion of market activity, were also shut down shortly after the charges were filed.
Robo Inu, SaitaRealty And SaitaChain Also Under Investigation
The FBI has listed more crypto companies that are currently being investigated for fraudulent market activity. In a separate statement, it named Robo Inu, SaitaRealty and SaitaChain as projects that are being looked into.
According to the FBI, these companies have “made false statements about their cryptocurrencies” and have performed several “sham trades” to make their tokens look like good investments.
Related Articles:
- Will Popcat Flip Floki And Bonk With 25% October Surge? Crypto All-Stars Zooms Past $2.1M In Presale, Offers 699% APY
- Most Searched Cryptocurrencies On GeckoTerminal Today – Sigma, Immutable, Peng
- ZachXBT Doxes Wallets Linked To Controversial Crypto & NFT Influencer Murad
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Sui announces strategic partnership with Franklin Templeton Digital Assets
Amazon to invest an additional $4 billion in Anthropic, OpenAI's rival
A trader spent $22,600 to buy BULLY, which is currently worth $5.95 million
Polymarket Blocks French Users Amid Government Investigation into Gambling Law Compliance