ChainCatcher reported that the U.S. Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ) jointly filed a lawsuit against four crypto companies suspected of fraud and market manipulation on October 9, including Gotbit Consulting, ZM Quant Investment and CLS Global. These companies artificially raised token prices, deceived unsuspecting buyers, and persuaded exchanges to lower fees to increase profits.

Gotbit is the largest company on this list, working with several well-known brands and managing assets as high as $1.5 billion. The company now faces huge fines and asset confiscations, and the CEO may face up to 20 years in prison.

In 2019, Gotbit's CEO Alexey Andryunin revealed its operating methods, saying that the company was not registered in any jurisdiction. In 2023, ZachXTB revealed its market manipulation through leaked documents.