Market makers charged for first time in US history
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✅ Federal prosecutors in Boston have filed the first criminal charges against financial firms for cryptocurrency market manipulation and wash trading
✅ Eighteen individuals and entities have been charged with large-scale fraud and market manipulation, including the heads of market-making firms Gotbit, ZM Quant, CLS Global, MyTrad
✅ Four defendants pleaded guilty and another agreed to do so. Three were arrested in Texas, the UK, and Portugal. More than $25 million in cryptocurrency was seized, and trading bots responsible for fictitious trading of some 60 digital assets were disabled.
🎯 According to the indictment, the defendants artificially inflated trading activity to create the appearance of active trading activity, which “helped position the tokens as good investments.” These deceptive practices allegedly attracted new buyers, causing asset prices to rise. The defendants then sold their tokens at high prices.
