Here’s how the FBI used fake crypto to expose widespread fraud
The FBI created a fake cryptocurrency to identify 18 fraudulent crypto actors in a recent mass fraud arrest.
The FBI brought criminal charges against 18 individuals and entities for engaging in fraudulent crypto activities and market manipulation through the use of its own fake cryptocurrency. As part of “Operation Token Mirrors,” FBI agents created a fake cryptocurrency token, NexFundAI, to expose deceptive trading practices like wash trading and pump-and-dump schemes.
The U.S. Attorney’s Office for the District of Massachusetts announced the charges, which target leaders of four cryptocurrency companies and four financial services firms acting as market makers.
These firms, including ZM Quant, CLS Global, MyTrade, and Gotbit,…
