The U.S. Securities and Exchange Commission (SEC) has filed lawsuits against three crypto market makers, ZM Quant, Gotbit, and CLS Global, accusing them of using algorithms to "wash" and create fake trading volume and liquidity, misleading retail investors. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, and fines. SEC documents show that the FBI conducted a sting operation using a fictitious token, NexFundAI, and the related companies are accused of unknowingly participating in fake trading of the token. (Financefeeds)

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