U.S. SEC files market manipulation charges against three crypto market makers: ZM Quant, Gotbit, and CLS Global

DeepFlowTech · 2026-02-05T00:40:29+00:00

The U.S. Securities and Exchange Commission has filed market manipulation charges against three crypto market makers for using algorithms to conduct false trades and deceive retail investors. Additionally, nine individuals have been indicted for hiring manipulation services. The FBI is investigating through fictitious tokens, leading to the indictment of 15 entities.

DeepFlowTech

2026-02-05 00:40:29

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Deep Tide TechFlow News, February 5th, according to Financefeeds, the U.S. Securities and Exchange Commission (SEC) has filed market manipulation charges against three crypto market makers—ZM Quant, Gotbit, and CLS Global. The SEC accuses these three companies of using algorithms to conduct false trades, creating artificial trading volume, and deceiving retail investors. Additionally, the SEC has also sued nine individuals, including promoters and company employees, accusing them of hiring manipulation services and executing meaningless trades, in violation of anti-fraud and registration provisions of securities law.

As part of the investigation, the FBI conducted a sting operation using a fictitious token called NexFundAI, revealing these companies’ willingness to engage in false trading. This case has led to the indictment of 15 entities and has triggered related criminal proceedings.

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