Odaily Planet News: According to the announcement by the U.S. Securities and Exchange Commission (SEC), the SEC has filed lawsuits against three institutions: ZM Quant Investment, Gotbit Consulting (Gotbit Hedge Fund), and CLS Global FZC, accusing them of impersonating "market makers" and manipulating various cryptocurrency markets through volume-padding trading and other methods, misleading retail investors.
The SEC pointed out that the aforementioned institution and nine related individuals executed wash trades through algorithms, creating false trading volumes and a false appearance of liquidity, which induced investors to purchase related assets based on misleading signals. The case has been submitted to the U.S. federal court in Massachusetts, and the SEC has applied for a permanent injunction, return of ill-gotten gains, civil penalties, and a ban on executive positions for the involved individuals.
The investigation also involved a fake token enforcement operation created by the FBI to expose related manipulative practices. The SEC stated that it will continue to strengthen regulatory enforcement against fraud and manipulation in the cryptocurrency asset market. (financefeeds)