wire fraud Archives - Coin Engineer https://coinengineer.net/blog/tag/wire-fraud/ 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 wire fraud Archives - Coin Engineer https://coinengineer.net/blog/tag/wire-fraud/ 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.

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]]> https://coinengineer.net/blog/us-court-fines-cls-global-428k-for-wash-trading/feed/ 0 NFT Scammers Hit with $22 Million Penalty! https://coinengineer.net/blog/nft-scammers-hit-with-22-million-penalty/ https://coinengineer.net/blog/nft-scammers-hit-with-22-million-penalty/#respond Mon, 23 Dec 2024 17:00:24 +0000 https://coinengineer.net/blog/?p=33951 Two 23-year-olds from California, Gabriel Hay and Gavin Mayo, have been arrested and charged with defrauding investors of over $22 million in crypto assets through a NFT rug pull. The two face fraud charges after allegedly promoting and abandoning various NFT and digital asset projects, misleading investors with false claims and unfulfilled promises. The United

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]]> Two 23-year-olds from California, Gabriel Hay and Gavin Mayo, have been arrested and charged with defrauding investors of over $22 million in crypto assets through a NFT rug pull. The two face fraud charges after allegedly promoting and abandoning various NFT and digital asset projects, misleading investors with false claims and unfulfilled promises.

The United States Department of Justice announced that Hay and Mayo were charged with conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. They allegedly misled investors with false roadmaps and made materially false statements about the projects, ultimately abandoning them after raising millions from unsuspecting backers.

Misleading NFT Projects

The indictment claims that the duo promoted the Vault of Gems NFT project as the “first NFT project pegged to a hard asset.” However, after raising funds, they abandoned the project, leaving investors with nothing. Prosecutors also claimed they made threats when someone tried to expose their fraudulent activities.

The Justice Department stated that the two harassed a project manager who attempted to expose their role in the Faceless NFT project. The scammers reportedly used intimidation tactics to conceal their involvement, falsely claiming others as the project’s owners.

Fraudulent Tactics Across Multiple Projects

The charges cover multiple digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. The Department of Justice has vowed to work with law enforcement to combat fraud in the crypto and NFT space, which has been a target for fraudulent actors seeking to exploit new technologies for financial gain.

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