FBI Ensnares Cryptocurrency Scammers Via NexFundAI

A covert operation is typical for the U.S. Federal Bureau of Investigation (FBI). However, this marks the first effort by the agency to create its own crypto token aimed at achieving justice. On Wednesday, an unsealed indictment charged Gotbit, CLS Global, MyTrade, ZM Quant, and 18 individuals with artificially raising token prices through fake transactions in exchange for payment.

The Importance Of NexFundAI

One of the aforementioned tokens was NexFundAI, an Ethereum-based cryptocurrency developed by the FBI to target crypto market manipulators. Jodi Cohen, a Special Agent with the FBI Boston Field Office, described it as an unprecedented step.

The NexFundAI token currently has a market capitalization of $177,000, according to DEXScreener. Over the past 24 hours, trading volume for the token reached $3.5 million, reflecting a whopping 5,000% surge.

This investigation, the first of its kind, uncovered numerous fraudsters within the cryptocurrency sector. Wash trading has long been banned in financial markets, and cryptocurrency is no exception, stated Acting United States Attorney Joshua Levy. The FBI is urging individuals impacted by the trading of fraud-related tokens to reach out to them. The agency has included its own token among others like Saitama, Robo Inn, VZZN, and Lillian Finance.

Clarity Needed

The U.S. Securities and Exchange Commission (SEC) has also taken legal action against Gotbit Consulting, ZM Quant Investment, and CLS Global. Onchain activity suggests that wallets associated with the FBI have recently conducted a number of meme coin transactions, as noted by Coinbase director Conor Grogan.

It remains unclear whether the FBI was aware of this, but they inadvertently revealed their wallets. The wallet that funded the FBI wallet quickly allocated resources to several other wallets, resulting in numerous transactions. Grogan remarked on X that it seems FBI wallets hold at least 75% of the token supply.

In addition, Grogan identified that wallets connected to the FBI hold coins like Pornrocket, EthereumMAX, and BONE. It remains uncertain if other users transferred those coins to the FBI-linked wallet addresses.