The FBI created its own cryptocurrency and secretly launched it on the market - to expose "price manipulation"

The FBI's token called NexFundAI was created on the Ethereum platform and launched on the cryptocurrency market "undercover."

As a result of the investigation, the Securities and Exchange Commission brought charges against three "market makers" and nine additional individuals suspected of schemes to inflate the prices of crypto assets; meanwhile, the U.S. Department of Justice charged 18 individuals and entities with involvement in "widespread fraud and manipulation" in the cryptocurrency market.

The suspects allegedly made false announcements about the tokens to give the appearance of an active trading market. Among the aforementioned market makers were ZMQuant, CLS Global, and MyTrade, who traded NexFundAI in collusion, unaware that it had been created by the FBI.

“What the FBI discovered in this case is essentially a new twist on old-school financial crimes,” says Special Agent Jodi Cohen, who oversees the Boston office of the FBI.

It is noted that the scheme allowed the organizers to "reap millions of dollars" — $25 million will be returned to investors. In a comment to CoinDesk, an FBI representative stated that trading of the NexFundAI coin has already been "restricted."

Source: The Verge