US Prosecutors Charge 4 Crypto Companies

Reading Time: < 1 minute

Authorities have charged four cryptocurrency companies and 15 individuals with participating in fraudulent activities and market manipulation, following an investigation during which the FBI oversaw the development of a new digital token to aid in detecting criminal behavior.

In Boston, federal prosecutors brought forth charges against four firms – Gotbit, CLS Global, MyTrade, and ZM Quant – as well as the leaders and employees of these and other companies.

The operation resulted in four arrests, five individuals agreeing to plead guilty, and the confiscation of over $25 million worth of cryptocurrency.

According to Acting US Attorney Joshua Levy, the defendants engaged in deceptive trades to artificially inflate the trading volume of various cryptocurrency tokens, and then sold them off, leaving innocent investors at a disadvantage.

“This case involves a blend of contemporary technology, crypto, and a classic form of fraud, specifically a ‘pump and dump’ scheme, which has been prevalent in traditional stock markets for decades,” Levy stated during a press conference.