TechFlow News: On February 5, according to Financefeeds, the U.S. Securities and Exchange Commission (SEC) filed market manipulation charges against three crypto market makers—ZM Quant, Gotbit, and CLS Global. The SEC alleges that these firms used algorithms to conduct fictitious trades, artificially inflating trading volume and deceiving retail investors. Additionally, the SEC has charged nine individuals—including promoters and company employees—for hiring manipulation services and executing meaningless trades, violating anti-fraud and registration provisions under securities laws.
As part of the investigation, the U.S. Federal Bureau of Investigation (FBI) conducted a sting operation using a fictitious token named NexFundAI, revealing these firms’ willingness to engage in spoofing. This case has resulted in charges against 15 entities and triggered related criminal proceedings.
