Just In: US Charges Four Crypto Firms For Market Manipulation

Federal prosecutors in Boston charged Gotbit, ZM Quant, CLS Global, and MyTrade, along with their leaders and employees, with market manipulation and sham trading in cryptocurrency.

The investigation led to arrests abroad, and five people have already pleaded guilty or agreed to do so. The prosecution is, above all, regarded as a milestone in efforts to root out fraud in the crypto industry.

US Cracks Down on Market Manipulation and Crypto Fraud: Five Plead Guilty

Four companies involved—Gotbit, ZM Quant, CLS Global, and MyTrade—and their leaders and employees face charges related to manipulating the markets.

BOSTON, Oct 9 (Reuters) – Four cryptocurrency companies and 14 individuals have been charged in what U.S. prosecutors on Wednesday said was the first criminal prosecution of financial services firms for market manipulation and sham trading in the crypto sector.

Federal…

— db (@tier10k) October 9, 2024

The investigation, led by federal prosecutors in Boston, involved overseas arrests. So far, five have pleaded guilty. Some agreed to plead guilty in a significant movement in the crackdown on fraudulent dealings within the crypto space.

This is among the first criminal prosecutions targeting financial services firms within the crypto sector. The crackdown marks one of the serious ways the US seeks to crack down on fraudulent activities within the cryptocurrency market.

A few days ago, blockchain investigator ZachXBT helped track down and recover approximately $275,000 in stolen cryptocurrency. The owner had become the victim of a social engineering scam, which had stolen around $5 million from its targets. This recovery comes as a light-shedding move on some of the great vulnerabilities inside the crypto community to show how important such investigations are in keeping track of and recovering digital assets that have been stolen.

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