Undercover operations are not uncommon for the US Federal Bureau of Investigation (FBI). However, for the first time, the bureau carried out an operation that set an example in terms of issuing its own cryptocurrency in the name of justice.
Accusations and Allegations
Companies Gotbit, CLS Global, MyTrade, ZM Quant and 18 individuals in the untarnished list of defendants announced on Wednesday were accused of artificially inflating token prices. These individuals engaged in fraudulent trading activities by receiving payments for buying and selling tokens.
These accusations include Ethereum, which was created by the FBI to trap manipulators. 
$2,383 There is also a ‘NexFundAI’ token based on FBI Boston Branch Special Agent in Charge Jodi Cohen said this was an “unprecedented step.”
According to DEXScreener, the NexFundAI token currently has a market cap of $177,000. The token’s trading volume increased by 5,000% in the last 24 hours, reaching $3.5 million.
Statements of Institutions and Individuals
“This investigation, the first of its kind, identified multiple fraudsters in the cryptocurrency industry,” Interim U.S. Attorney Joshua Levy said in a statement. “Wash trading has long been banned in financial markets and cryptocurrency is no exception,” he said.
The FBI lists its own token alongside coins such as Saitama, Robo Inn, VZZN and Lillian Finance, encouraging individuals who have been subjected to fraud to apply. The US Securities and Exchange Commission (SEC) also filed lawsuits against Gotbit Consulting, ZM Quant Investment and CLS Global.
“I don’t know if the FBI was aware of this, but they exposed their wallets,” Coinbase director Conor Grogan said. Immediately following the distribution, the FBI made dozens of transactions by transferring the wallets that provided capital to the wallet to many other wallets. “FBI wallets own at least 75% of the token supply from what I can see,” he said.
Grogan revealed that FBI-linked wallets held coins such as Pornrocket, EthereumMAX and BONE. It remains unclear whether these coins were sent by other users to the wallet addresses linked to the FBI.
These developments are considered as part of increasing regulatory efforts in the cryptocurrency market. Innovative methods such as the NexFundAI token created by the FBI are seen as important steps to detect and prevent manipulations in the market. For crypto investors, such operations may have the potential to increase security in the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
