A complex set of overlapping companies, individuals and alleged crimes have been tackled by US federal authorities.
Three so-called market makers in the crypto space, along with associated individuals, have been charged by the United States Securities and Exchange Commission (SEC) with fraud and market manipulation in civil suits filed in the District Court of Massachusetts. The Justice Department and Federal Bureau of Investigation (FBI) were also involved in the investigation.
The suits were filed Oct. 9 against Gotbit Consulting, ZM Quant Investment and CLS Global. In addition, two suits were filed against individuals associated with the cases against the firms. A total of nine individuals were charged, the SEC said.
Gotbit Consulting and its marketing director Fedor Kedrov are accused of market manipulation through wash trading on the behalf of individuals promoting cryptocurrencies called Saitama and Robo Inu. Wash trading is the practice of self-trading to create the impression of market interests.
