October 12, 2024 at 01:18AM
The U.S. Department of Justice announced arrests in Operation Token Mirrors, targeting individuals accused of manipulating cryptocurrency markets. The FBI created NexFundAI as part of the investigation. Eighteen entities are charged with wash trading, resulting in over $25 million in confiscated cryptocurrency and multiple arrests across several countries.
### Meeting Takeaways – Oct 12, 2024 – Cryptocurrency / Cybercrime
1. **Operation Token Mirrors**:
– The U.S. DOJ announced arrests related to the manipulation of digital asset markets in a widespread fraud operation dubbed Operation Token Mirrors.
2. **Creation of NexFundAI**:
– The FBI has launched its own cryptocurrency token and company called NexFundAI, aimed at securing value and promoting positive changes in AI.
3. **Charges and Arrests**:
– Three market makers (ZM Quant, CLS Global, MyTrade) and a fourth market maker (Gotbit) along with key personnel have been charged with wash trading.
– Total of 18 individuals/entities involved, five have pleaded or agreed to plead guilty; arrests were made in Texas, the U.K., and Portugal.
4. **Confiscation and Disabling of Trading Bots**:
– Over $25 million in cryptocurrency has been confiscated.
– Trading bots involved in wash trading for around 60 cryptocurrencies have been disabled.
5. **Fraud Mechanism**:
– Defendants allegedly executed bogus trades to inflate token prices (pump-and-dump scheme), misleading investors about the viability of investments.
6. **Individuals and Firms Charged**:
– Notable individuals and companies charged include:
– **Gotbit**: Aleksei Andriunin, Fedor Kedrov, Qawi Jalili
– **ZM Quant**: Riqui Liu, Baijun Ou
– **CLS Global**: Andrey Zhorzhes
– **MyTrade**: Liu Zhou
– Other involved parties and firms include Saitama LLC, Robo Inu Finance, Lillian Finance, and several individuals.
7. **Investor Warning**:
– The SEC emphasizes that retail investors may be vulnerable to fraudulent activities perpetrated by institutional actors in the crypto markets.
8. **Call to Action**:
– Follow for more insights on cryptocurrency and market activities on Twitter and LinkedIn.