The Federal Bureau of Investigation created “NexFundAI” to identify cryptocurrency scammers
As part of a clandestine operation to apprehend crypto market manipulators, the FBI established its cryptocurrency, “NexFundAI.”
The U.S. Federal Bureau of Investigation (FBI) frequently conducts covert operations. However, this would be the bureau’s first endeavor to create its crypto token in order to pursue justice.
On Wednesday, an unsealed indictment named Gotbit, CLS Global, MyTrade, ZM Quant, and 18 other individuals for conducting fraudulent transactions in exchange for payment, thereby artificially inflating the price of tokens.
NexFundAI, an Ethereum-based cryptocurrency that was created by the FBI to identify cryptocurrency market manipulators, was one of those tokens. Jodi Cohen, the Special Agent of the FBI’s Boston Field Office, described it as a “unprecedented measure.”
According to DEXScreener, the NexFundAI token is presently trading at a market capitalisation of $177,000. The token’s transaction volume has increased by 5,000% in the past 24 hours, reaching $3.5 million.
“This investigation, which was the first of its kind, identified numerous fraudsters in the cryptocurrency industry.” Josh Levy, the Acting United States Attorney, declared that “Wash trading has been prohibited in the financial markets for an extended period, and cryptocurrency is no exception.”
The FBI is urging those who have been impacted by the trading of tokens associated with the fraud to reach out to them. The agency has incorporated its own token into a list of currencies that includes Saitama, Robo Inn, VZZN, and Lillian Finance.
The U.S. Securities and Exchange Commission (SEC) also filed lawsuits against Gotbit Consulting, ZM Quant Investment, and CLS Global.
According to Coinbase director Conor Grogan, onchain activity suggests that FBI-linked wallets have recently executed a significant number of memecoin transactions.
“It is uncertain whether the FBI was aware of this, but they doxxed their purses.” The wallet that seeded the FBI wallet promptly transferred capital to numerous other wallets following its deployment, which led to the execution of numerous transactions. Grogan stated on X, “From what I can find, the FBI wallets hold at least 75% of the token supply.”
Grogan discovered that purses associated with the FBI contain coins such as Pornrocket, EthereumMAX, and BONE. Other users’ transmission of those coins to the FBI’s linked wallet addresses is uncertain.
Also Read: First-ever crypto market manipulation charges filed by U.S. prosecutors
