A shocking development has rocked the cryptocurrency world as Alexey Andryunin, CEO of Gotbit, has been arrested in Portugal at the request of the FBI and is awaiting extradition to the U.S. ¹. This news has sent the HMSTR token price tumbling by 11% in just one day.
The Allegations
Gotbit Hedge Fund, which partnered with Hamster Kombat to act as the market maker for HMSTR, is accused of cryptocurrency fraud along with two other companies, ZM Quant and CLS Global. The U.S. has charged 15 individuals and three companies, resulting in four arrests, five plea agreements, and the seizure of over $25 million in cryptocurrency.
FBI Investigation Reveals "Wash Trading" and Market Manipulation
In a clever sting operation, the FBI created its own token, NexFundAI, on the Ethereum blockchain to uncover illicit activities. Market makers (MMs) shared their algorithms for inflating volumes and creating fake transactions, which the FBI deemed as "wash trading," "fake transactions," "market manipulation," and "artificially inflating trade volume" . These charges could lead to up to 20 years in prison for those involved.
Investor Alert
The HMSTR token price has dropped to 0.003862, a 9.04% decline. Investors should exercise caution and stay informed about the ongoing investigation and its implications. Remember, this article includes third-party opinions and should not be considered financial advice.
Stay Safe in the Crypto Space
- Be cautious of suspicious market activities
- Verify the authenticity of market makers and tokens
- Stay updated on regulatory developments and investigations
The cryptocurrency market can be unpredictable, and it's crucial to prioritize safety and knowledge.
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