To catch crypto market makers red-handed, the FBI created a memecoin and came to them with an order to promote it. We are talking about the high-profile case of the US Department of Justice against #Gotbit, #ZMQuant,#CLSGlobaland #Mytrade.

Quote from db's story:

"The FBI created its own coin called the NexFundAI Token and used the services of the indicted firms to catch them.

"The FBI has taken the unprecedented step of creating its own cryptocurrency token and company to identify, disrupt, and prosecute these alleged scammers."

The NexFundAI token was a cryptocurrency token created at the behest of law enforcement. NexFundAI ran on the Ethereum blockchain and was a security."

Gotbit, ZM Quant, CLS Global and MyTrade got to work, showed what they were capable of and earned criminal cases. From the US Department of Justice press release it is known that#GotbitCEO Alexey Andryunin was arrested yesterday, October 8, in Portugal. And is awaiting extradition to the US. Fedor Kedrov, from Russia, was the director of market creation for Gotbit. Kavi Jalili, from Russia, was the director of sales for Gotbit. Gotbit, Kedrov and Jalili are charged with wire fraud and conspiracy to commit market manipulation and wire fraud.

The FBI, by the way, even created a form for refunding funds for those who bought the tokens included in the case. But only US citizens can apply for a refund.

The investigation also cooperated along the US-UK line. As part of the case, crypto assets worth $25 million have already been confiscated. Bots for creating fictitious trading volumes for more than 60 crypto assets have also been disabled (so some of them with their charts may surprise you now).

All this in itself is a loud event. BUT its consequences are more interesting. There are many questions:

1) What other companies will go under as part of the deal detained with the investigation? After all, they will drain, and they will do so actively. Despite the generally good (depending on what you compare it to) American prisons.

2) What will happen to the tokens that market makers worked with?#HMSTRand#STRKat Gotbit, for example. And ZM Quant, as we wrote, generally manages liquidity on more than 120 exchanges and supports thousands of trading pairs with cryptocurrencies.

3) Is this the beginning of a broader process of “bringing order” to the crypto market?

4) What other companies are under investigation by the FBI right now?

DWF Labs hasn't been affected by this whole story. But there's a risk that it's temporary. The market maker was already on The Wall Street Journal's radar in May. Our July post about how DWF Labs-related tokens might one day be dumped is relevant again.