Three crypto companies and 15 individuals have been charged with extensive fraud and market manipulation. This follows an unprecedented investigation by the US Federal Bureau of Investigation , which involved creating a new digital token to help expose criminal activity in the sector.
Acting US Attorney Joshua Levy highlighted that the defendants engaged in sham trades to artificially inflate trading volumes of various tokens, ultimately leaving innocent investors “holding the bag.”by the South China Morning Post, Levy characterized the case as a blend of modern technology and traditional fraud, specifically referencing a “pump and dump” scheme that has long plagued financial markets.
The Securities and Exchange Commission has also filed related civil cases. Among the companies charged was Saitama, whose market value soared to $7.5 billion primarily due to the manipulation of its tokens by its leadership, including CEO Manpreet Singh Kohli, who was arrested in the UK.