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    FBI token: How the FBI used a fake AI fund coin to nab fraudsters

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    The FBI used a fake cryptocurrency, NexFundAI, to expose and charge fraudsters manipulating the crypto market. The trick involved a collaboration with a crypto exchange and its market-controller, MyTrade, who agreed to launch the FBI’s false token. MyTrade’s founder unwittingly revealed how they manipulated trading volumes and ran pump and dump schemes. Following purported suspicious trades, the FBI charged him and two associates with market manipulation and fraud.

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    The FBI cooked up an elaborate scheme to nab fraudsters messing up the crypto market. They created a fake cryptocurrency called “NexFundAI (NEXF)” which was masquerading as shares in an AI-focused fund. The FBI then approached the scam artists, pretending they need help to pump up the trading volume to make it look like this coin was a hot commodity.

    The fraudsters were willing to lend a hand, and the FBI had all the evidence they needed to charge them with market manipulation and fraud. This is the first time the FBI has played such a trick with a made-up cryptocurrency, and it’s the first time they’ve charged anyone for messing with a crypto coin’s market value.

    Maybe it’s not a shock, but crypto market makers have been caught messing with prices in the past. The FBI found out this year that a firm called MyTrade MM was promising coin issuers they could inflate and control their token’s volume. These naughty details were just hanging out on their website.

    Next, the FBI went undercover. They met with an employee from a crypto exchange called LBank, which uses MyTrade to control their market. They agreed to launch the FBI’s fake coin on LBank with help from MyTrade.

    Then, things kicked into high gear. The undercover agents met with MyTrade’s founder, a dude named Liu Zhou who also goes by a couple of other names. He spilled the beans on how they manipulate trading volumes and set up pump and dump plans.

    What happens next? Well, the FBI’s fake token launched and on that very same day, MyTrade made a ton of suspicious trades for about 60 different clients. The FBI not long after accused Zhou and two of his buddies with market manipulation and fraud. The worst part? If found guilty, they could face five years in prison.

    There’s still speculation going on about whether the FBI’s fake token was actually the same as another crypto coin, but it’s yet to be confirmed. All in all, this wild ride just highlights how important it is to stay alert in the ever-changing crypto world.

    Source: Cointelegraph

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