Boston, MA – CLS Global FZC LLC, a financial services firm known in the cryptocurrency industry as a market maker, has agreed to plead guilty to charges related to its fraudulent manipulation of cryptocurrency trading volume.
As part of the criminal resolution, CLS Global will plead guilty to one count of conspiracy to commit market manipulation and wire fraud and one count of wire fraud in a September 2024 indictment returned by a federal grand jury in Boston.
CLS Global will also pay a total of $428,059 to the government, representing both seized cryptocurrency and a fine, and will be prohibited from participating in U.S. cryptocurrency markets.
The charges against CLS Global followed an undercover law enforcement operation targeting cryptocurrency wash trading, sham trading activity intended to attract investors.
The investigation included the creation of NexFund, a purported cryptocurrency company that had a website (https://nexfundai.com) and an Ethereum-based token that traded on the Uniswap cryptocurrency exchange before being disabled by law enforcement.
CLS Global has admitted that it agreed to provide market making services for the NexFund token that included wash trading to fraudulently attract investors to purchase the token.
As part of the criminal resolution, CLS Global will be prohibited from participating in cryptocurrency transactions on trading platforms available to investors located in the United States or providing services to cryptocurrency clients based in the United States.
CLS Global has also committed to make annual certifications that its business practices conform to these prohibitions.
The Securities & Exchange Commission brought a related civil enforcement action alleging violations of the securities laws and has entered into a separate resolution with CLS Global.
Moneys seized from or paid by CLS Global will be credited in the SEC resolution, and vice versa.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement.
Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Related Federal Cases
- Vimoon Sortsoy, Counterfeit Methamphetamine Pills, Massachusetts 2021 · New Hampshire
- Luciano Schipelliti, Crypto Investment Scam, Haverhill MA, 2021 · Massachusetts
- Federal Agencies Warn of Crypto-Asset Risks, Banking Sector, USA, 2023 · California
- FDIC Warns of Crypto Misrepresentation, Washington DC, 2023 · Massachusetts
- Viviane Cazeau, Bank Fraud Scheme, Massachusetts, 2023 · New Hampshire
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
