The US SEC has filed market manipulation charges against three cryptocurrency market makers: ZM Quant, Gotbit, and CLS Global

According to Financefeeds, the U.S. Securities and Exchange Commission (SEC) has charged three cryptocurrency market makers—ZM Quant, Gotbit, and CLS Global—with market manipulation. The SEC alleges that these three companies used algorithms to conduct fraudulent trading, creating artificial trading volume to deceive retail investors. Additionally, the SEC has also sued nine individuals, including promoters and company employees, accusing them of hiring manipulation services and executing meaningless trades, violating anti-fraud and registration provisions of the securities laws.

As part of the investigation, the Federal Bureau of Investigation (FBI) conducted a sting operation using a fictitious token called NexFundAI, revealing these companies' willingness to engage in fraudulent trading. This case has led to the indictment of 15 entities and triggered related criminal proceedings.