US Charges 14 Individuals And Four Crypto Companies In Major ‘Sham Trading’ Scandal

By theamericannews
10 hours Ago

09 Outubro 2024 – 4:51PM

NEWSBTC

On Wednesday, US prosecutors charged four crypto companies and 14
individuals in what is hailed as the first criminal prosecution
targeting financial services firms for market manipulation and sham
trading activities within the crypto sector. Allegations Of
Price And Trading Volume Manipulations According to a court filing
by the US District Court of the District of Boston Massachusetts,
one of the companies charged is crypto trading firm ZM Quant, which
is registered in the British Virgin Islands. Prosecutors allege
that from approximately 2022 to 2024, ZM Quant conspired to
manipulate the trading volume and prices of various undisclosed
cryptocurrencies. Related Reading: ETH’s Fate Hinges On
$2,300: Will Ethereum Soar To $6,000 Or Dive To $1,600? The scheme
allegedly allowed the company to profit by receiving payments from
crypto companies and selling the manipulated cryptocurrencies at
what prosecutors said were “inflated prices”. The court filings
detail the objectives of the conspiracy, suggesting that the
primary intent was to engage in market manipulation and wire fraud.
Prosecutors allege that the conspirators aimed to enrich themselves
at the expense of market integrity and investor trust. Crypto Fraud
Charges In addition to ZM Quant, the indictment includes other
firms—Gotbit, CLS Global, and MyTrade—along with their executives
and employees. This coordinated enforcement action also
involved international arrests. Notably, five individuals connected
to the case have already entered guilty pleas or agreed to plead
guilty, indicating a potential willingness to cooperate with
authorities. Related Reading: Bitcoin Price Crash To $62,000 Was
Led By This Holer Cohort, Data Shows The charges of these companies
also revolve around serious allegations of deceptive trading
practices, often referred to as “sham trading,” which is designed
to create a false impression of market activity, misleading
investors and artificially manipulating prices. Featured image from
DALL-E, chart from TradingView.com