Gotbit, ZMQuant, CLS Global, My Trade Crypto Fraud Case Details: What We Know So Far

The Gotbit, ZMQuant, CLS GLOBAL, My Trade case is slowly becoming one of the most sophisticated crackdown by US regulators as news of the FBI creating ‘NexFundAI’ tokens to identify these fraudsters comes to light.

On October 9, U.S regulators including Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ) jointly filed a case against four crypto companies suspected of fraud and market manipulation.

The charges involved self-trading to manipulate the market, as well as multiple crimes related to the cryptocurrencies Saitama, Robo Inu, and NexFundAI. A total of nine individuals were indicted, and some defendants agreed to separate settlements.

The indictment states that Gotbit and its marketing director created market interest for these crypto projects through false transactions. The relevant personnel involved in this case are located in countries, including the United States, Russia, and India, which makes the complexity of the case more evident.

As the case gets more transparent, it has now come to light that the FBI had created a token and company called “NexFundAI” on Ethereum to identify, combat and bring these suspected fraudsters to justice. The trading for NexFundAI was closed 21 days ago. 

It is reported that the FBI used the token to meet with market makers to discuss “cooperation”. One of the defendants reportedly claimed that his company used robots to buy and sell at the same time on CEX to generate trading volume.

Note that after, FBI ‘s strategic disclosure of NexFundAI surfaced, Abstract Chain team member @0xCygaar has ‘cheekily’ accused the FBI of violating the MIT license when issuing the token NexFundAI. 

I’ve alerted the FBI to take the necessary steps against the… FBI

— cygaar (@0xCygaar) October 10, 2024

0xCygaar stated that the FBI directly copied multiple library files of OpenZeppelin in its smart contract, but did not attach the license statement in the code as required, which is considered a copyright infringement.

Also Read: ZachXBT GOTBIT Predictions True: US charges GOTBIT, ZMQUANT, CLS GLOBAL, MY TRADE