ā¼ļø Breaking News: Gotbit CEO Alexey Andryunin was arrested in Portugal at the FBI's request and faces extradition to the U.S. He's implicated in a cryptocurrency fraud involving Gotbit Hedge Fund, the market maker for the Hamster Kombat (HMSTR) token.
š¹ Impact on HMSTR Token:
HMSTR token dropped by 11% following news of the arrest, sending ripples through the crypto market.
š The Charges:
The U.S. has charged three companies and 15 individuals, including Gotbit, ZM Quant, and CLS Global, for crypto fraud. This crackdown has led to:
4 arrests
5 plea deals
$25 million in crypto seized
š FBI Sting Operation:
The FBI launched an undercover operation by creating a token, NexFundAI, on Ethereum. Several market makers revealed their market manipulation tactics, including inflating trading volume and creating fake addresses to simulate token growth.
šØ Key Findings:
The FBI identified:
Wash trading
Fake transactions
Market manipulation
Artificially inflated trade volume
Those involved could face up to 20 years in prison.
