Comment
Author: Admin | 2025-04-28
The FBI created its own cryptocurrency company and crypto token in order to bait fraudsters who would make fake trades in order to boost the price before cashing out, according to a press release from the U.S. Department of Justice. The FBI operation, dubbed Operation Token Mirrors, was unprecedented in the crypto space and 18 individuals and entities have been charged over their alleged fraud and manipulation in indictments announced on Wednesday. Three firms, ZM Quant, CLS Global, and MyTrade, allegedly offered their services to engage in what’s called wash trading of the FBI crypto token, along with about 60 other coins, to make it appear that there was tremendous interest. A fourth firm, Gotbit, allegedly engaged in similar wash trading but didn’t trade the FBI’s dedicated token. The wash trades were made using “multiple trading bots,” according to the DOJ, which have since been deactivated, and at least $35 million in crypto has been seized. The crypto company and token created by the FBI was called NexFundAI and was built on the Ethereum blockchain. The token had a dedicated website that looked identical to any of the other sites created for cryptocurrencies that are created every day, but it now includes a banner at the top that reads, “This website was created at the direction of the Federal Bureau of Investigation as part of an investigation into cryptocurrency fraud and market manipulation. For more information, please click here.” The link for “click here” directs visitors to the DOJ press
Add Comment