TechFlow, April 17 — The U.S. Securities and Exchange Commission (SEC) announced that on April 7, a Massachusetts federal court entered a final judgment against UAE-based cryptocurrency market maker CLS Global FZC LLC. The firm had previously been charged with manipulating the market trading of NexFundAI's digital assets by creating artificial trading activity to induce investors to purchase.
According to the judgment, CLS Global must pay $425,000 in civil penalties, $3,000 in disgorgement of ill-gotten gains, and $80.39 in pre-judgment interest. Additionally, the company must ensure within 30 days that neither its existing nor any new clients are U.S. persons or entities, and submit annual compliance certification reports for the next three years. The civil penalties may be offset if the company pays fines in related criminal proceedings.
