Details of the Cryptofraud Cases of Gotbit, ZMQuant, CLS Global, and My Trade: What We Know Thus Far
The Gotbit, ZMQuant, CLS GLOBAL, and My Trade cases are gradually evolving into some of the most advanced enforcement actions by US authorities, as information on the FBI’s creation of “NexFundAI” tokens to help identify these scammers becomes public.
On October 9, the Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Federal Bureau of Investigation (FBI) jointly filed a complaint against four cryptocurrency companies that they accused of engaging in market manipulation and fraud.
The accusations included several offences pertaining to the cryptocurrencies Saitama, Robo Inu, and NexFundAI in addition to self-trading as a means of manipulating the market. Nine people in all were charged, and some of the accused consented to separate agreements.
According to the indictment, Gotbit and its marketing director used fraudulent transactions to generate interest in these cryptocurrency schemes. The fact that the pertinent parties in this case are dispersed among nations such as Russia, India, and the United States highlights the issue’s complexity.
As the case becomes more clear, it has emerged that the FBI developed an Ethereum token and business named “NexFundAI” with the goal of locating, battling, and prosecuting these alleged scammers. 21 days have passed since NexFundAI’s trading was closed.
It has been alleged that the FBI met with market makers to discuss “cooperation” using the token. According to reports, one of the defendants stated that his business generated trading volume on CEX by using robots to simultaneously buy and sell.
It should be noted that Abstract Chain team member @0xCygaar “cheekily” accused the FBI of breaking the MIT license when it issued the token NexFundAI following the FBI’s strategic disclosure of the project
According to 0xCygaar, the FBI immediately copied several OpenZeppelin library files into their smart contract, however they neglected to include the licensing statement as necessary, which is regarded as a copyright violation.
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