The operation uncovered pump-and-dump schemes and wash trades, seized over $25 million in cryptocurrencies, and shut down several market-manipulating bots.
The FBI successfully orchestrated a cryptocurrency sting operation using tokens created to investigate market manipulation. The NexFundAI token launched on the Ethereum blockchain was part of an operation that led to the indictment of 18 individuals and entities for their involvement in fraudulent activities.
The investigation revealed a sophisticated scheme involving pump-and-dump operations and wash trading to artificially inflate token prices. $25 million worth of cryptocurrencies were seized and multiple trading bots responsible for market manipulation across 60 different tokens were shut down.
The operation, known as “Operation Token Mirrors,” is seen as a warning to crypto investors about the risks of market manipulation. Authorities, including the FBI and SEC, continue to investigate those involved in the fraudulent crypto scheme.
