On October 10, US prosecutors charged four crypto companies including Gotbit, ZM Quant, CLS Global, MyTrade and 14 individuals with price manipulation and fraudulent trading. Of these, the FBI arrested nine individuals, including two Vietnamese.

The defendants used wash trading, a form of self-trading of assets to fake trading volume to attract retail investors.

The FBI secretly created the NexFundAI token to lure these companies into price manipulation, thereby gathering incriminating evidence.

This is the first time the US government has directly prosecuted companies accused of manipulating the crypto market. More than $25 million in crypto assets were seized, and four defendants pleaded guilty.

The event caused Bitcoin ($BTC ) to drop more than 2.5%, from $62,300 to $60,500, and altcoins also fell 3-12%.

The total value of liquidations in the past 24 hours reached more than $170 million, mainly from long orders. The crypto market has not shown any signs of a positive recovery despite the expectation of October as a growth month.