wash trading Archives - Coin Engineer https://coinengineer.net/blog/tag/wash-trading/ Btc, Coins, Pre-Sale, DeFi, NFT Fri, 04 Apr 2025 10:48:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://coinengineer.net/blog/wp-content/uploads/2024/04/cropped-Coin-Engineer-Logo-Favicon-2-32x32.png wash trading Archives - Coin Engineer https://coinengineer.net/blog/tag/wash-trading/ 32 32 US Court Fines CLS Global $428K for Wash Trading! https://coinengineer.net/blog/us-court-fines-cls-global-428k-for-wash-trading/ https://coinengineer.net/blog/us-court-fines-cls-global-428k-for-wash-trading/#respond Fri, 04 Apr 2025 11:30:38 +0000 https://coinengineer.net/blog/?p=39634 A federal court in Boston has fined UAE-based crypto firm CLS Global $428,059 for wash trading, following a sting operation by the FBI involving a trap token called NexFundAI. According to the Massachusetts US Attorney’s Office, the firm also received a three-year probation from offering services in the US. CLS Global had pleaded guilty to

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]]> A federal court in Boston has fined UAE-based crypto firm CLS Global $428,059 for wash trading, following a sting operation by the FBI involving a trap token called NexFundAI. According to the Massachusetts US Attorney’s Office, the firm also received a three-year probation from offering services in the US. CLS Global had pleaded guilty to conspiracy to commit market manipulation and wire fraud.

CLS Global Caught in FBI’s NexFundAI Trap

The FBI launched a fake token, NexFundAI, as part of an undercover investigation in May 2024. CLS Global, along with Hong Kong-linked ZM Quant Investment and Russia-linked Gotbit Consulting, agreed to provide fraudulent market-making services, manipulating token volume to deceive investors.

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The SEC filed fraud charges in October 2024 against CLS Global and its employee Andrey Zhorzhes.

What Is Wash Trading?

Wash trading involves artificially inflating trading volume by repeatedly buying and selling the same asset. This gives a false impression of demand.

A report from Chainalysis in January 2025 estimated at least $2.6B in wash traded volumes — about 2% of total daily crypto market volume.

However, the US National Bureau of Economic Research suggested in 2022 that up to 70% of activity on unregulated exchanges could be wash trading.

CLS Global

Who Is CLS Global?

Founded in 2017, CLS Global was created to fill the demand for “high-quality market-making solutions.” CEO Filipp Veselov, formerly of Latoken, leads the firm. Their CRO, Pavel Singaevskii, was previously with Stex, which allegedly shut down unexpectedly in 2023.

Despite the charges, CLS Global still operates and maintains over 110,000 followers on X.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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]]> https://coinengineer.net/blog/us-court-fines-cls-global-428k-for-wash-trading/feed/ 0 Gotbit Founder Extradited to the US: Fraud Charges! https://coinengineer.net/blog/gotbit-founder-extradited-to-the-us-fraud-charges/ https://coinengineer.net/blog/gotbit-founder-extradited-to-the-us-fraud-charges/#respond Thu, 27 Feb 2025 07:00:36 +0000 https://coinengineer.net/blog/?p=37415 The founder of Gotbit, a well-known market maker in the crypto industry, is facing market manipulation and fraud charges in the US. Aleksei Andriunin was caught in an FBI operation and extradited from Portugal to the US. Here are the details! US authorities revealed that Gotbit and its executives fell for the NexFundAI (NEXF) “trap

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]]> The founder of Gotbit, a well-known market maker in the crypto industry, is facing market manipulation and fraud charges in the US. Aleksei Andriunin was caught in an FBI operation and extradited from Portugal to the US. Here are the details!

US authorities revealed that Gotbit and its executives fell for the NexFundAI (NEXF) “trap token” created by the FBI to catch market manipulators. The company allegedly engaged in wash trading, artificially inflating the trading volume of crypto assets to help projects secure listings on platforms like CoinMarketCap.

Serious Allegations Against Gotbit Executives!

The US Department of Justice announced that a federal grand jury had indicted Gotbit founder Aleksei Andriunin, along with executives Fedor Kedrov and Qawi Jalili, on charges of market manipulation and fraud. Authorities claim that the executives earned tens of millions of dollars between 2018 and 2024 through these tactics.

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26-year-old Russian national Aleksei Andriunin is also accused by US officials of transferring part of these illegal proceeds to his personal Binance account. Authorities stated that Gotbit executives admitted to using these strategies in a 2019 interview.

Facing Up to 20 Years in Prison!

If convicted, Aleksei Andriunin could face up to 20 years in prison and a fine of up to $250,000. Additionally, he could be forced to forfeit assets and repay twice the amount of illicit gains.

The US Securities and Exchange Commission (SEC) also filed a fraud lawsuit against Gotbit and its executives in October 2024. These allegations further highlight the increasing scrutiny of the crypto industry by regulators.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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