Cryptocurrency Firm Sentenced for Wash Trading in Massachusetts

BOSTON, Massachusetts – CLS Global FZC LLC, a financial services firm known in the cryptocurrency industry as a “market maker,” was sentenced today in federal court in Boston for criminal charges relating to its fraudulent manipulation of cryptocurrency trading volume.

In a related undercover law enforcement operation targeting cryptocurrency “wash trading,” a sham trading activity intended to attract investors, CLS Global agreed to provide market making services for NexFundAI, a purported cryptocurrency company with a website (https://nexfundai.com) and an Ethereum-based token that traded on the Uniswap cryptocurrency exchange.

As part of its sentence, CLS Global is 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, as set forth in the plea agreement.

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 both the criminal and SEC resolutions.

The exact criminal charges against CLS Global include one count of conspiracy to commit market manipulation and wire fraud and one count of wire fraud. CLS Global pleaded guilty to these charges in January 2025. It was charged criminally in September 2024.

As part of its sentence, CLS Global is required to pay a total of $428,059 to the government, representing both a fine and seized cryptocurrency. The court also sentenced CLS Global to a term of probation for three years.

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. Assistant U.S. Attorney Carol Head, Chief of the Asset Recovery Unit is handling forfeiture.

CLS Global provided “market making” and other services for cryptocurrency companies through its public website and other promotional materials. CLS Global was a company registered in the United Arab Emirates that employed over 50 individuals, all located outside the United States, but offered services related to cryptocurrencies available to investors inside the United States.

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