TechFlow news, on January 22, the U.S. Department of Justice announced that CLS Global, a UAE-registered cryptocurrency market maker, has agreed to plead guilty to providing "wash trading" services for NexFundAI—a virtual project created by undercover law enforcement agents during July–August 2024. The company used algorithms to conduct self-trading across multiple wallets, fabricating trading volume to attract investors.
Company employees admitted in a video conference: "This is wash trading; we do this for many of our clients." If the court approves the plea agreement, CLS Global will pay a fine of $428,059 and forfeit seized cryptocurrency, and will be barred from participating in the U.S. cryptocurrency market. The company has over 50 overseas employees and primarily provides crypto-related services to U.S. investors.
