US prosecutors in Boston charged 14 people and an additional four companies in the first criminal prosecution of financial services firms for market manipulation and fraud in the crypto sector. Gotbit; ZM Quant; CLS Global; and MyTrade, and their leaders and employees were charged Wednesday in a massive crypto takedown. The arrests also included individuals based overseas.
Five people have already agreed to plead guilty or have done so, according to sources familiar with the case. The cryptocurrency world has been under a microscope of investigation in the US for some time now. There is also debate on the safety of crypto, with many hackers and scammers using digital assets to rob innocent investors. Compared to other countries, Americans have lost billions in cryptocurrency scams in a year. The Federal Bureau of Investigation (FBI) reported that Americans lost $5.6 billion in 2023 alone.
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A recent FBI report highlighted how common crypto fraud and crimes take place in the US. “Over the years, cryptocurrency’s widespread promotion as an investment vehicle, combined with a mindset associated with the ‘fear of missing out (FOMO),’ has led to opportunities for criminals to target consumers and retail investors,” the report read.
The exact details of a court hearing remain unknown.