FBI Creates Crypto Tokens: 'Genius Trap' Effects of Market Manipulation Scammers

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 (FBI) created its own crypto token, NexFundAI to make it easier to find fraudsters in the crypto market.


As a result, US prosecutors in Boston have indicted 18 individuals and entities including four major crypto firms such as Gotbit, ZM Quant, CLS Global and MyTrade on criminal charges of market manipulation.


The allegations stemmed from widespread fraud involving market manipulation and falsification designed to trick investors into increasing the value of cryptocurrencies.


The FBI working in secret launched tokens specialized in increasing trading volume and price gains.


In addition, the indictment covers a broad scheme of laundry trading in which the defendants admitted to planning to inflate the value of more than 60 tokens including the Saitama Token which at its peak reached a market capitalization of $7.5 billion.


The conspirators allegedly made false claims about the tokens and used deceptive tactics to mislead investors.


After artificially raising the price of the token, they will withdraw money when the level soars and further deceive investors in the traditional method of 'pump and dump'.


In addition, the alleged firms also hired ZM Quant and Gotbit to carry out the illegal trading activities.


These firms will execute fake trades using different types of wallets and hide the true nature of the activity while creating fake trading volumes to make the token appear more attractive to investors.


However, the accused pleaded not guilty and faces severe penalties including up to 20 years in prison on charges of market manipulation.


This case serves as a clear reminder of the risks in the crypto market and the importance of due diligence when investing in digital assets.

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