U.S. Prosecutors File First Market Manipulation Charges in Crypto Industry

U.S. prosecutors have unveiled charges against four crypto companies and 14 individuals in what they describe as the first criminal case addressing market manipulation and fraud in the digital currency space.

The charges were revealed by federal authorities in Boston on Wednesday.

The companies involved—Gotbit, ZM Quant, CLS Global, and MyTrade—are accused of engaging in schemes to manipulate cryptocurrency markets, according to the indictment. The investigation has also led to international arrests, highlighting the global scope of the case.

So far, five individuals have either pleaded guilty or agreed to do so as the trials continue.

READ MORE:

FTX Seeks Settlement with Caroline Ellison, Demanding Asset Turnover

The indictment outlines various accusations, including a scheme to deceive investors through false advertising, market manipulation, and fraudulent trading practices.

The charges point to the use of digital wallets, online marketing tactics, messaging apps, and other methods aimed at artificially boosting cryptocurrency prices.

This case carries significant consequences for the integrity of the crypto market, as federal prosecutors have emphasized that cryptocurrency companies will now face the same level of oversight traditionally reserved for conventional financial institutions.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.