FBI Creates Ethereum-Based Token NexFundAI

The FBI has entered the cryptocurrency space by developing NexFundAI, an Ethereum-based token. A sting operation aimed at exposing illicit activity in the cryptocurrency markets includes this token. The FBI has been able to prosecute a number of people and businesses engaged in market manipulation as a result of this operation.

Summary of FBI Operation NexFundAI

• NexFundAI was established by the FBI to find market manipulation and other fraudulent activities in cryptocurrency.
• 30 individuals and companies charged, including market makers like ZMQuant, CLS Global, MyTrade for conspiracy to commit an offence.
• The Defendant engaged in wash trading to create a false and misleading appearance of active trading in the token, and artificially inflated its trading volume.
• Liu Zhou, under the persona MyTrade and also working with NexFundAI, is accused of telling promoters that they were ahead of the game because they controlled the pump and dump.
• The operation represents a new era in financial crime and the nature of criminal activity within the cryptocurrency space growing out of complexity and sophistication.
• The Department of Justice seized $25 million in fraud proceeds from the scheme, which will be returned to victims.