FBI Launches Cryptocurrency Token NexFundAI to Target Scammers Running “Pump-and-Dump” Schemes
Eighteen individuals and entities, including companies such as ZM Quant, CLS Global, and MyTrade, have been charged for their involvement in a scheme to artificially boost interest in the FBI token and 60 other cryptocurrencies. The operation, which used multiple trading bots, has been shut down by the Department of Justice, resulting in the seizure of over $35 million in cryptocurrencies. NexFundAI, a company operating on the Ethereum blockchain, has been linked to the investigation into cryptocurrency fraud.
The crude details of the scam reveal evidence of scammers communicating on platforms like Telegram and WhatsApp to discuss strategies for creating fake trading volume. Andrey Zhorzhes, one of the accused individuals, admitted to using his company to inflate transaction volume and make the tokens appear legitimate by using multiple wallets to conceal their activity. FBI agent Jodi Cohen noted that this case represents a new tactic in combating financial crime, targeting not only scammers but also cryptocurrency developers and promoters. Several individuals have already pleaded guilty, while others have been arrested in different countries.
Despite the legal actions taken, new tokens associated with NexFundAI have surfaced, indicating that the cryptocurrency industry remains susceptible to fraudulent schemes. The company has even urged victims of scams to come forward, sparking criticism on social media.
