‼️ Breaking News: The CEO of Gotbit Hedge Fund, Alexey Andryunin, has been arrested in Portugal at the request of the FBI, with extradition to the U.S. pending. Gotbit, a key market maker for the Hamster Kombat (HMSTR) token, has been accused of engaging in fraudulent activities that rocked the cryptocurrency market.

🐹 Impact on HMSTR Token:

The arrest has sent shockwaves through the HMSTR community, with the token experiencing a -11% drop yesterday. This sharp decline reflects growing investor concerns as details of the investigation come to light.

🔍 The Charges:

The U.S. government has filed serious charges against three companies and 15 individuals tied to a vast cryptocurrency fraud network. Among those implicated are Gotbit, ZM Quant, and CLS Global. These companies are alleged to have used illegal market manipulation tactics. So far, the investigation has led to:

Four arrests

Five plea deals

$25 million in cryptocurrency seized

📉 FBI's Undercover Sting Operation:

The FBI employed a clever sting operation to uncover these practices. Agents created a fake token, NexFundAI, on the Ethereum blockchain and approached several market makers (MMs). In undercover calls, employees from these MMs revealed how they used sophisticated algorithms to artificially inflate trading volumes and create fake addresses to simulate organic token growth.

🚨 Key Findings:

The FBI's findings exposed rampant abuse of market mechanisms, with practices classified as:

Wash trading: Executing trades for the sole purpose of creating misleading activity

Fake transactions: Recording trades that never actually happened

Market manipulation: Distorting prices or volumes to mislead investors

Artificially inflating trade volume: Making a token appear more popular than it really is

Those involved could face up to 20 years in prison for these violations.

💥 Conclusion:

This sweeping crackdown on crypto fraud, particularly involving the HMSTR token, has sent shockwaves through the crypto industry. Investors holding or trading HMSTR should stay vigilant and informed as this case continues to unfold.