A tip from the SEC led federal prosecutors to set up a fake company to bust crypto market manipulators.
The firms are charged with "wash trading," artificially increasing trade volume to boost token prices.
The case marks the first such charges against crypto firms, prosecutors say.
The charges are the first in the crypto industry related to "wash trading."
The sting charged ZM Quant, CLS Global, and MyTrade with wash trading related to their communications with NexFundAI.
Persons:
—, Jodi Cohen, cryptocurrency –, Joshua Levy
Organizations:
SEC, Service, Securities and Exchange Commission, FBI, CLS Global, NexFundAI, Boston, United
Locations:
Boston, Saitama