In a bold move, the FBI created its own Ethereum-based cryptocurrency, NexFundAI, to investigate price manipulation in crypto markets. This undercover operation led to charges against multiple individuals and companies by the SEC and DOJ for alleged fraud, including wash trading and making false claims to inflate token prices. The investigation resulted in the recovery of $25 million in fraudulent proceeds, which will be returned to investors. 🙌

https://www.theverge.com/2024/10/10/24267098/fbi-coin-crypto-token-nexgenai-sec-doj-fraud-investigation

The FBI secretly created a coin to investigate crypto pump-and-dump schemes

In a bold move, the FBI created its own Ethereum-based cryptocurrency, NexFundAI, to investigate price manipulation in crypto markets. This undercover operation led to charges against multiple individuals and companies by the SEC and DOJ for alleged fraud, including wash trading and making false claims to inflate token prices. The investigation resulted in the recovery of $25 million in fraudulent proceeds, which will be returned to investors. 🙌  https://www.theverge.com/2024/10/10/24267098/fbi-coin-crypto-token-nexgenai-sec-doj-fraud-investigation

Sam Mendoza

Remember that talentless rapper?

https://fortune.com/crypto/2024/11/15/bitcoin-thief-sentenced-5-years-1-billion-crypto-laundering-razzlekhan/

Remember that talentless rapper?  https://fortune.com/crypto/2024/11/15/bitcoin-thief-sentenced-5-years-1-billion-crypto-laundering-razzlekhan/

In August 2016, Ilya Lichtenstein hacked into a virtual currency exchange, Hong Kong-based Bitfinex, and stole approximately 120,000 bitcoin.

Bitcoin thief sentenced to 5 years in prison for stealing $1 billion in crypto and laundering it with his social-media rapper wife ‘Razzlekhan’

Cyril

So we're to believe the FBI didn't use any of the processes it researched to pump and dump it's own coin?

Another odd tale from last week - Stolen government money has been returned: In a twist for the crypto world, a U.S. government-controlled wallet drained of $20 million last Thursday saw most of its funds mysteriously returned the next day (though $1.2 million is still missing). Blockchain sleuth ZachXBT flagged the transactions as fitting the pattern of a bad actor, with funds shuffling through decentralized finance platforms and exchanges like Uniswap and Binance-associated n.exchange. The wallet’s original funds, linked to the infamous 2016 Bitfinex hack and seized by the DOJ, have raised questions, especially with small "test" transfers possibly indicating further moves.

https://decrypt.co/288296/hacker-returns-millions-drained-us-government-crypto-wallet

Another odd tale from last week - Stolen government money has been returned: In a twist for the crypto world, a U.S. government-controlled wallet drained of $20 million last Thursday saw most of its funds mysteriously returned the next day (though $1.2 million is still missing). Blockchain sleuth ZachXBT flagged the transactions as fitting the pattern of a bad actor, with funds shuffling through decentralized finance platforms and exchanges like Uniswap and Binance-associated n.exchange. The wallet’s original funds, linked to the infamous 2016 Bitfinex hack and seized by the DOJ, have raised questions, especially with small "test" transfers possibly indicating further moves.  https://decrypt.co/288296/hacker-returns-millions-drained-us-government-crypto-wallet

Most of the funds drained from a U.S. government crypto wallet in an apparent attack Thursday were sent back early Friday.

Hacker Returns $19.3 Million to Drained US Government Crypto Wallet - Decrypt

Jerome Cody

The Manhattan U.S. attorney’s office is investigating Tether now, issuer of the world’s biggest stablecoin, over possible violations of sanctions and anti–money-laundering rules

https://www.wsj.com/finance/currencies/federal-investigators-probe-cryptocurrency-firm-tether-a13804e5

The Manhattan U.S. attorney’s office is investigating Tether now, issuer of the world’s biggest stablecoin, over possible violations of sanctions and anti–money-laundering rules  https://www.wsj.com/finance/currencies/federal-investigators-probe-cryptocurrency-firm-tether-a13804e5

Authorities are looking at possible violations of anti-money-laundering and sanctions rules.

Exclusive | Federal Investigators Probe Cryptocurrency Firm Tether

What a surprise… Not! Crypto Wash Trading, Lin et al, 2020; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3530220

Picking whom to trust with your money matters. So perhaps more oversight will help crypto markets.

What a surprise… Not! Crypto Wash Trading, Lin et al, 2020; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3530220  Picking whom to trust with your money matters. So perhaps more oversight will help crypto markets.

Sam Mendoza

A group of likeminded people in Crypto are talking about this.