FBI exposes global crypto scheme involving wash trading

Key points:

• US authorities charged 10 individuals for orchestrating a crypto manipulation scheme using wash trading.
• The FBI deployed a bait token, NexFundAI, to uncover and document illegal activity.
• The investigation led to arrests, extraditions, and the seizure of over $1 million in crypto assets.

US federal prosecutors have revealed details of a large-scale crackdown on crypto market abuse. On March 30, the Department of Justice (DOJ) charged 10 individuals linked to four companies with manipulating digital asset prices.

According to investigators, the group acted in coordination. They artificially boosted trading volumes and created the illusion of strong demand, misleading investors and driving up prices.

The investigation ran from March through September 2025, followed by arrests and extraditions. Several key figures are now in custody in the United States.

Court filings state that these schemes caused significant losses to investors worldwide. Authorities have already seized more than $1 million in cryptocurrency.

How the Scheme Worked and Who Was Involved

Employees and executives from Gotbit, Vortex, Antier, and Contrarian were among those charged. Authorities allege they engaged in so-called wash trading to simulate market activity.

The operation spanned multiple jurisdictions, with arrests carried out globally. Three defendants, including senior executives, were extradited from Singapore to the US and appeared in federal court in Oakland. Some participants have already pleaded guilty and been sentenced.

Goliath Ventures files for bankruptcy after CEO arrest in $328M scheme

Authorities believe the project operated as a $328 million Ponzi scheme.

Читать дальше

A key part of the investigation was the FBI’s operation dubbed “Token Mirrors.” As part of the sting, agents created their own token, NexFundAI, and used it to engage with firms offering fake liquidity services. This allowed authorities to document how these schemes were organized and executed.

Additionally, two defendants pleaded guilty and were sentenced by a federal judge. Prosecutors say the scheme involved inflating token metrics before quickly selling off assets to lock in profits.