HMSTR Token Market Maker Detained in Portugal
Gotbit CEO Alexey Andryunin has been arrested in Portugal at the request of the FBI and is awaiting extradition to the U.S.
đč Gotbit Hedge Fund, which partnered with Hamster Kombat as the market maker for the HMSTR token, has been implicated (đœ possibly causing the token's value to drop by 11% following the news).
The U.S. has filed charges against three companies and 15 individuals for cryptocurrency fraud. Among the accused are Gotbit, ZM Quant, CLS Global, as well as their leaders and employees.
So far, the investigation has led to four arrests, five plea agreements, and the seizure of over $25 million in cryptocurrency.
For those who missed the Reuters article, hereâs a brief overview:
đŽ The FBI created its own token, NexFundAI, on the Ethereum blockchain and reached out to various market makers (MMs) for their services.
đŽ During calls and private messages with this undercover project, MM employees revealed their algorithms for inflating volumes, creating multiple addresses for organic token distribution, and other techniques.
đŽ The FBI interpreted these MM services as "wash trading," "fake transactions," "market manipulation," and "artificially inflating trade volume." As a result, the individuals involved are now facing charges that could lead to up to 20 years in prison.
