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ZachXBT exposes company asking for promo after guilty plea in SEC fraud case
The post ZachXBT exposes company asking for promo after guilty plea in SEC fraud case appeared on BitcoinEthereumNews.com. Crypto security sleuth and blockchain expert ZachXBT has mentioned that CLS Global, a firm that recently pleaded guilty to fraud, approached him for a promo. The cryptocurrency market-making firm was charged by a federal grand jury in Boston on January 21, according to a notice from the US Department of Justice (DOJ). ZachXBT, replying to the platform’s February 14 “Happy Valentine’s Day” post today, shared a screenshot of CLS Global’s message asking him for a “potential collaboration on X.” “Asking me for paid promo when you just plead guilty to fraud charges by the SEC late last year?” the security expert questioned. Screenshot of a message CLS Global sent to ZachXBT on X. Source: @zachxbt (X/Twitter) The charges the on-chain sleuth was referring to were from an October 9, 2024 filing by the US Securities and Exchange Commission (SEC), which accused the firm of engaging in wash trading practices. The company admitted to participating in a scheme that involved generating artificial trading volume to mislead investors. In its plea agreement, the UAE-based financial firm agreed to pay $428,059 in fines and forfeited assets, while also being permanently barred from operating within US crypto markets. ZachXBT recalls undercover market manipulation investigations US Justice Department’s notes disclosed how authorities launched an undercover operation to expose CLS Global’s fraudulent trading tactics. Investigators created a fake cryptocurrency project, NexFundAI, complete with a website and an Ethereum-based token listed on Uniswap. The operation revealed that CLS Global had agreed to provide market-making services for NexFundAI, including wash trading, an illegal practice that inflates trading volume to attract unsuspecting investors. CLS Global was reportedly implementing a “Market Making proposal” that included a section called “Volume Support.” This section featured a depiction of the CLS Global “dashboard,” which displayed metrics such as “total volume,” “CLS volume,” and…
The post ZachXBT exposes company asking for promo after guilty plea in SEC fraud case appeared on BitcoinEthereumNews.com.
Crypto security sleuth and blockchain expert ZachXBT has mentioned that CLS Global, a firm that recently pleaded guilty to fraud, approached him for a promo. The cryptocurrency market-making firm was charged by a federal grand jury in Boston on January 21, according to a notice from the US Department of Justice (DOJ). ZachXBT, replying to the platform’s February 14 “Happy Valentine’s Day” post today, shared a screenshot of CLS Global’s message asking him for a “potential collaboration on X.” “Asking me for paid promo when you just plead guilty to fraud charges by the SEC late last year?” the security expert questioned. Screenshot of a message CLS Global sent to ZachXBT on X. Source: @zachxbt (X/Twitter) The charges the on-chain sleuth was referring to were from an October 9, 2024 filing by the US Securities and Exchange Commission (SEC), which accused the firm of engaging in wash trading practices. The company admitted to participating in a scheme that involved generating artificial trading volume to mislead investors. In its plea agreement, the UAE-based financial firm agreed to pay $428,059 in fines and forfeited assets, while also being permanently barred from operating within US crypto markets. ZachXBT recalls undercover market manipulation investigations US Justice Department’s notes disclosed how authorities launched an undercover operation to expose CLS Global’s fraudulent trading tactics. Investigators created a fake cryptocurrency project, NexFundAI, complete with a website and an Ethereum-based token listed on Uniswap. The operation revealed that CLS Global had agreed to provide market-making services for NexFundAI, including wash trading, an illegal practice that inflates trading volume to attract unsuspecting investors. CLS Global was reportedly implementing a “Market Making proposal” that included a section called “Volume Support.” This section featured a depiction of the CLS Global “dashboard,” which displayed metrics such as “total volume,” “CLS volume,” and…
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