The FBI Secretly Created a Coin To Investigate Crypto Pump-and-Dump Schemes (theverge.com)
- Reference: 0175228851
- News link: https://yro.slashdot.org/story/24/10/10/1857245/the-fbi-secretly-created-a-coin-to-investigate-crypto-pump-and-dump-schemes
- Source link: https://www.theverge.com/2024/10/10/24267098/fbi-coin-crypto-token-nexgenai-sec-doj-fraud-investigation
> The FBI's Ethereum-based token, NexFundAI, was created with the help of "cooperating witnesses." As a result of the investigation, the Securities and Exchange Commission charged three "market makers" and nine people for [1]allegedly engaging in schemes to boost the prices of certain crypto assets . The Department of Justice charged 18 people and entities for "widespread fraud and manipulation" in crypto markets.
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> The defendants allegedly made false claims about their tokens and executed so-called "wash trades" to create the impression of an active trading market, prosecutors claim. The three market makers -- ZMQuant, CLS Global, and MyTrade -- allegedly wash traded or conspired to wash trade on behalf of NexFundAI, an Ethereum-based token they didn't realize was created by the FBI.
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> "What the FBI uncovered in this case is essentially a new twist to old-school financial crime," Jodi Cohen, the special agent in charge of the FBI's Boston division, said in a statement. "What we uncovered has resulted in charges against the leadership of four cryptocurrency companies, and four crypto 'market makers' and their employees who are accused of spearheading a sophisticated trading scheme that allegedly bilked honest investors out of millions of dollars."
[1] https://www.theverge.com/2024/10/10/24267098/fbi-coin-crypto-token-nexgenai-sec-doj-fraud-investigation
Go ahead and spring for that "water wet" tattoo. (Score:2)
Great idea! Along the same lines, I'm starting Duhcoin to investigate the intricate econosocial phenomena of FUCKING DUH.
Oh, really? (Score:2)
I've sat through about 80 hours of crypto "education" and it still hasn't changed my opinion of crypto. I fully admit I could be wrong with my opinion but I still do not see any way crypto is anything but exchanging one set of regulated, somewhat accountable insiders for an unregulated, unaccountable, even unknown set of others in a monetary system beset with fraud, crooks, conspiracy theorists, get poor quick schemes and no few wackos.
It's the answer to a mathematical question no one asked.
NexFundAI? (Score:2)
Well, it's good that they put AI in the name. But, with cryptocurrency, shouldn't they also have "blockchain" in there?
"NexBlockFundAI?"
Just ban it already. (Score:2)
At least until carbon is priced. There haven't been many clearer cases for banning something. It creates literally nothing while consuming public resources and polluting the environment.
In the time of chimpanzees I was a monkey (Score:2)
Bummed I wasn't smart enough to dump all my funds into the various crypto-ponzi schemes of the last 10 years. I'm such a looser.
Re: (Score:2)
FBI-coin, IT CAN ONLY GO UP! buy buy buy! LOL. (Or don't.)