As a seasoned crypto investor with over a decade of experience in navigating the digital asset landscape, I can’t help but feel a sense of cautious optimism as I witness the relentless efforts of the US Securities and Exchange Commission (SEC) and other authorities to crack down on fraudulent activities in the industry. Having lost substantial amounts to scams and Ponzi schemes over the years, it’s heartening to see that regulators are finally taking action against those who exploit unsuspecting investors.
The U.S. Securities and Exchange Commission (SEC) has taken further action by filing civil lawsuits in a Massachusetts district court against crypto companies accused of unethical activities and manipulation. In this case, the SEC is collaborating with the Justice Department (DOJ) and the Federal Bureau of Investigation (FBI). This means they are working together to investigate these allegations.
On Wednesday, October 9th, I’ve found myself named in a lawsuit that involves three cryptocurrency firms: ZM Quant Investment, Gotbit Consulting, and CLS Global. Furthermore, the Securities and Exchange Commission (SEC) has also filed lawsuits against two individuals associated with this case, while charging a total of eighteen individuals and entities according to the Justice Department.
The U.S. Securities and Exchange Commission (SEC) alleges that Gotbit Consulting and their Marketing Director, Fedor Kedrov, have engaged in market manipulation through a practice known as wash trading. This activity is said to be carried out on behalf of people who are endorsing digital currencies such as Robo Inu and Saitama.
Vy Pham, a Vietnamese national living in California, structured various cryptocurrency initiatives. However, she is facing multiple distinct accusations – unregistered securities offerings, fraudulent activities related to securities, and market manipulation. Moreover, the regulatory body has separately filed lawsuits against four individuals linked to Pham.
Moreover, besides charging the entities mentioned earlier, the SEC has additionally implicated two more companies: ZM Quant Investment and CLS Global. These companies are linked to a digital currency known as NexFundAI, which was reportedly developed by the FBI. Furthermore, it’s important to note that ZM Quant, together with four other individuals, is facing charges related to another cryptocurrency asset called SaitaRealty coin.
Executives from ZM Quant are presently in Russia, England, and Hong Kong. The Securities and Exchange Commission (SEC) has filed complaints that seek permanent injunctions, conduct-based injunctions, return of allegedly ill-gotten gains along with interest, and civil penalties against all defendants. Additionally, officer and director bans are being sought against certain defendants.
The FBI mentioned in a separate announcement that they are examining more cryptocurrencies, among which are Robo Inu, SaitaChain, Saitama, VZZN, NexFundAI, Lillian Finance, and SaitaRealty.
US DOJ Charges Eighteen Individuals
18 individuals and organizations have been accused by the U.S. Department of Justice for wire fraud and illegal manipulation of the cryptocurrency market. Additionally, regulatory authorities confiscated approximately $25 million worth of cryptocurrencies from various trading bots implicated in wash trading practices. Acting U.S. Attorney Joshua Levy stated:
In a groundbreaking move, our investigation has exposed multiple individuals involved in deceitful activities within the cryptocurrency sector, a first of its kind endeavor. It’s important to note that wash trading, which has been unlawful in traditional financial markets, is also prohibited in the realm of cryptocurrencies. This instance showcases how an advanced technology like cryptocurrency can collide with century-old strategies such as pump and dump. The core takeaway is simple: if you manipulate information to mislead investors, that’s fraud. End of story. Our office is committed to rooting out fraudulent practices, including but not limited to the cryptocurrency industry.
The intensified enforcement could encourage the Securities and Exchange Commission to strengthen their investigations into questionable activities within the cryptocurrency sector.
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2024-10-10 10:42