Dubai-based cryptocurrency market maker CLS GlobalHe pleaded guilty for his wash trading transactions on the decentralized exchange Uniswap (UNI). US prosecutors for the District of Massachusetts announced that the company that accepted the charges will pay a fine of $428,059 with court approval. The company will also be banned from trading on platforms accessible to US investors.
The Truth Revealed by the FBI’s “NexFundAI” Plan
CLS Global was referred to court in September 2024 on charges of market manipulation and wire fraud conspiracy. The charges stemmed from an undercover investigation conducted by the FBI. FBI, NexFundAI named Ethereum (ETH) $3,292.2 It enabled transactions on Uniswap by creating a token based on This step was used to track CLS Global and two other market makers. The NexFundAI project was later disabled as part of the investigation.
According to the statement made by prosecutors, CLS Global employees tried to increase the volume of NexFundAI. wash trading He accepted that they offered support through their methods. In video calls recorded during the investigation, a CLS employee stated that the company could help “create volume.” The employee stated that by making transactions through more than one wallet with the algorithmic system, they make these transactions more organic and difficult to follow.
Market Manipulation and Legal Process
CLS Global employees Uniswap It was determined that NexFundAI token buying and selling transactions were carried out on it. These transactions artificially inflated volume data and were aimed at luring investors. In the video recordings, the CLS employee said: “I know this is wash trading. “People may not like it,” he was alleged to have said.
Besides that US Securities and Exchange Commission (SEC) also initiated a separate legal action against CLS Global for violations of securities laws. This process affects both the future of the company and cryptocurrency marketIt is expected to be a turning point in terms of regulations.
This operation, carried out with the support of the FBI, once again demonstrated the importance of transparency and regulations in the cryptocurrency market. The measures taken against CLS Global set a deterrent example in the fight against market manipulation.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
