Subj : The FBI created a cryptocurrency just to track people abusing it
To   : All
From : TechnologyDaily
Date : Sun Oct 13 2024 11:45:05

The FBI created a cryptocurrency just to track people abusing it

Date:
Sun, 13 Oct 2024 10:32:41 +0000

Description:
The FBI has arrested fraudsters who used a cryptocurrency it created to trap 
them.

FULL STORY
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The FBI created a cryptocurrency company and crypto token as a bait for 
scammers who participate in pump-and-dump schemes, new reports have revealed. 

The tactic, which involve making fake trades to boost prices before cashing 
out, worked very well, with 18 people arrested for widespread fraud and 
manipulation in the crypto currency markets, marking the first ever set of 
criminal charges brought against financial service firms for wash trading and 
market manipulation in the cryptocurrency industry. 

Over $25 million in cryptocurrency was seized during the operation, along 
with trading bots responsible for millions of dollars worth of wash trades 
for around 60 different cryptocurrencies, which have been deactivated. 
Operation Token Mirrors 

 The cryptocurrency the FBI created was an Ethereum-based instrument named 
NexFundAI, which they used to track unsuspecting traders. 

Wash trades refers to the illegal process of buying and selling the same 
security as a form of market manipulation. Recent reports suggest that as 
much as 70% of all crypto currency transactions fall under this category, so 
it's no wonder police want to crack down. 

These are cases where an innovative technology  cryptocurrency  met a century 
old scheme  the pump and dump. The message today is, if you make false 
statements to trick investors, thats fraud. Period. stated Acting United 
States Attorney Joshua Levy. 

These charges are also a stark reminder of how vigilant online investors must 
be and that doing your homework before diving into the digital frontier is 
critical. People considering making investments in the cryptocurrency 
industry should understand how these scams work so that they can protect 
themselves. he adds. 

Also charged by the Security and Exchange Commission were three market 
makers, which refers to individuals who engage in two-sided markets of a 
security. 

Theres been a flurry of bad news stories for crypto investors recently, with 
crypto-linked cybercrime seeing a record year , with stolen funds inflows 
doubling to around $1.58billion in 2024. 

Via The Register More from TechRadar Pro Take a look at some of the best 
malware removal software Official Lego website hacked to promote crypto scam 
Check out our pick of the best endpoint protection tools around



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Link to news story:
https://www.techradar.com/pro/the-fbi-created-a-cryptocurrency-just-to-track-p
eople-abusing-it


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