On October 9, 2024, the U.S. Attorney’s Office for the District of Massachusetts announced charges against 18 individuals and entities in an international cryptocurrency-market manipulation investigation. Three named market makers—ZM Quant, CLS Global and MyTrade—were accused of wash trading tied to NexFundAI, a token created at law enforcement’s direction. Prosecutors also charged Gotbit and its leaders in a similar alleged scheme. These were allegations, not findings of guilt; defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. DOJ’s October 9, 2024 announcement sets out the original case and its allegations.
What is wash trading?
Wash trading is coordinated buying and selling designed to make an asset appear more actively traded than it really is. The trades may be made by the same party, or by parties working together, so the apparent activity does not reflect independent, organic demand.
In this case, prosecutors alleged that market makers used wash trades to make tokens look busy and attractive to prospective investors. The alleged conduct varied among defendants; the charges do not establish that every person or firm used the same method.
How did the alleged crypto pump-and-dump scheme work?
Prosecutors described a pattern in which cryptocurrency-company defendants allegedly made false statements about their tokens and arranged sham trades to create the appearance of genuine market interest. The purported activity could draw in new buyers and help push prices higher. Insiders were then alleged to have sold at artificially inflated prices—a pattern prosecutors called a “pump and dump.”
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →#1 Best Overall
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
Market makers were allegedly hired and paid to generate wash trades. The central distinction is between visible trading volume and real demand: a token can show frequent transactions without those trades representing independent buyers and sellers. The charging announcement describes alleged conduct, not proof that every accused participant followed this sequence.
Which crypto firms were charged?
The shorthand “three crypto firms” refers to ZM Quant, CLS Global and MyTrade, which DOJ said were charged over alleged wash trading connected with NexFundAI. The broader October 2024 operation also included Gotbit, its CEO and two directors, as well as cryptocurrency-company leaders and other individuals. DOJ’s total was 18 individuals and entities, not three firms alone.
Rank #2
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide (4.9 App Store, 4.8 Google Play) - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
- ZM Quant: DOJ alleged that the firm advertised trading bots capable of creating volume. Employees Riqui Liu and Baijun Ou were accused of discussing frequent trades and using multiple wallets to make activity appear organic.
- CLS Global: DOJ said employee Andrey Zhorzhes described an algorithm that generated trading volume through self-trades, and alleged that CLS traders provided services for NexFundAI.
- MyTrade MM: DOJ described a client dashboard for specifying wash-trading volumes. Founder Liu Zhou was charged and had agreed to plead guilty when the original announcement was issued. DOJ later reported that he pleaded guilty in October 2024.
- Gotbit: DOJ charged the firm, founder Aleksei Andriunin, and directors Fedor Kedrov and Qawi Jalili in connection with alleged market manipulation and fraud. Later developments are covered below.
The announcement also described separate allegations involving Saitama, Robo Inu, VZZN and Lillian Finance and leaders or promoters associated with those projects. Those allegations should not be collapsed into one identical scheme: the defendants, roles and claims differed.
Was the FBI-created token real?
Yes. DOJ said NexFundAI was a cryptocurrency token and company created at law enforcement’s direction as part of the investigation. FBI Boston Special Agent in Charge Jodi Cohen said the bureau took “the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice.” The operation’s creation of NexFundAI does not make the allegations against any particular defendant a finding of guilt.
Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Rank #3
- Proven security at scale: Over 9 years and millions of cards issued with no known remote hacks, while military‑grade EAL6+ security keeps your private keys locked inside the chip. Your cryptocurrencies stay strongly protected from online attackers.
- Tap once to manage your entire crypto wallet across 90 blockchains - no USB cables or Bluetooth, no batteries, no setup. Access 14,100+ coins & tokens, DeFi, NFTs, and staking instantly from your phone
- Smart backup: Use your second Tangem Wallet as your Backup keys with end‑to‑end encryption; no more papers, pictures. If one card is lost, the remaining can still restore full access, with an optional seed phrase available for advanced users.
- Engineered to last up to 25 years: Waterproof (IP69K), shockproof and tested for extreme temperatures from −25°C to 50°C. A durable cold wallet with long‑term protection and independently audited security.
- Trusted by 6 million users worldwide - buy, sell, swap, stake, and spend cryptocurrency directly. The secure offline storage wallet designed for how people actually use crypto wallets
How large was the operation?
- 18 individuals and entities were charged, according to the U.S. Attorney’s Office for the District of Massachusetts in its October 9, 2024 announcement.
- More than $25 million in cryptocurrency had been seized by the time of that announcement. This was the amount reported then, not a final recovery total.
- Approximately 60 cryptocurrencies were affected by wash trades attributed to deactivated trading bots, according to DOJ’s 2024 account. That case-specific figure is not a measure of how prevalent wash trading is across the cryptocurrency market.
- $7.5 billion was the alleged peak market value DOJ cited for Saitama. It is a figure from the charging announcement, not an independently established valuation.
What happened to Gotbit and the other named defendants?
The procedural status differs by defendant. Being charged, agreeing to plead guilty and pleading guilty are not interchangeable outcomes.
- Gotbit and Aleksei Andriunin: DOJ reported on March 21, 2025, that both had pleaded guilty. It said Gotbit admitted to manipulative trades for clients including Saitama and Robo Inu, agreed to cease operations, and agreed to forfeit approximately $23 million in seized cryptocurrency. That forfeiture agreement is distinct from the more-than-$25-million operation-wide seizure figure reported in 2024.
- MyTrade founder Liu Zhou: DOJ’s March 2025 update said he pleaded guilty in October 2024.
- CLS Global: DOJ’s March 2025 update said it pleaded guilty in January 2025.
- Other defendants: The cited updates do not establish a final disposition for every person or entity named in the original Massachusetts announcement. The allegations against those without a documented guilty plea or conviction remain allegations.
A separate case announced by the U.S. Attorney’s Office for the Northern District of California on March 30, 2026, and updated April 9, 2026, charged 10 foreign nationals associated with Gotbit, Vortex, Antier and Contrarian in three later indictments. Prosecutors alleged schemes to inflate token trading volume and price. These are subsequent, separate proceedings—not a revision of the original Massachusetts case’s count of 18—and the later defendants are presumed innocent.
Quick Recap
Best Value
- Dual-chip architecture for maximum protection: The next-gen, fully auditable TROPIC01 chip works alongside a certified EAL6+ Secure Element—completely NDA-free—to deliver radically transparent, industry-leading defense against physical attacks.
- Quantum-ready security: Get protection against future threats with the first-ever hardware wallet designed with quantum-ready architecture.
- See every detail with confidence: Our largest high-resolution color touchscreen makes it easy to navigate your assets, review transactions and manage your coins with clarity.
- Wireless freedom with encrypted Bluetooth control: Manage, buy, swap and stake securely using Trezor Suite on desktop or mobile. Qi2-compatible wireless charging keeps your Trezor powered up. No cables required—security meets convenience.
- Works seamlessly with Android, iOS and desktop: Connect wirelessly or via USB-C to your phone or computer. Manage your crypto anywhere with our companion Trezor Suite app.
Rank #4
- EAL5+ CERTIFIED SECURE ELEMENT + FINGERPRINT PROTECTION — Your private keys stay encrypted offline on a certified EAL5+ chip, the same security tier used in EMV bank cards. Built by DCENT, securing crypto since 2018. Fingerprint authentication adds a second layer no PIN-only wallet can match.
- 10,000+ ASSETS NATIVE ON 100+ BLOCKCHAINS — Hold Bitcoin, Ethereum, XRP, Solana, Cardano, popular stablecoins (USDT, USDC), and NFTs in one wallet. No third-party apps, no fragmented setup — every supported asset works straight out of the box.
- TAP-TO-SIGN MOBILE EXPERIENCE — Pair your wallet with the DCENT mobile app over Bluetooth. Manage tokens, review transactions, and access in-app swap features directly from your phone — no cables, no desktop required.
- WEB3 & dAPP ACCESS VIA METAMASK — Connect to MetaMask and other browser extension wallets to manage NFTs, claim airdrops, and access dApps. A large screen and intuitive 4-button interface keep every transaction clearly visible before you sign.
- SEAMLESS FIRMWARE UPDATES & 30-DAY MONEY-BACK GUARANTEE — Apply security updates without resetting your wallet or migrating funds. Backed by Amazon's 30-day money-back guarantee — your purchase is risk-free.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
