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- US prosecutors have charged 14 individuals and 4 companies with crypto fraud.
US prosecutors have charged 14 individuals and 4 companies with crypto fraud.
News on the Blockchain
October 10, 2024
@newsontheblockchain, 10/10/2024
Confidence in Knowledge. Providing daily news to make sure you're up to date!
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🌍 Daily Crypto Market Overview
Global Stats:
Cryptocurrencies: 2.4M+
Exchanges: 752
Market Cap: $2.12T (↓ 1.97%)
24h Volume: $66.32B (↑ 0.43%)
Bitcoin Dominance: 56.7%
Ethereum Dominance: 13.5%
ETH Gas Price: 8.68 Gwei
Fear & Greed Index: 37/100 (Fear)
🪙 Top 5 Cryptocurrencies by Market Cap:
Name | Price | 24h Change | Market Cap | 24h Volume |
|---|---|---|---|---|
Bitcoin (BTC) | $60,932.94 | +1.99% | $1.20T | $28.00B |
Ethereum (ETH) | $2,388.28 | +1.84% | $287.50B | $14.78B |
Tether (USDT) | $0.999 | +0.02% | $119.73B | $51.02B |
BNB (BNB) | $567.97 | +2.68% | $82.88B | $1.64B |
Solana (SOL) | $138.89 | +2.98% | $65.19B | $1.66B |
💹 Market Highlights:
Total DeFi Volume: $3.76B (5.66% of total volume)
Stablecoins Volume: $60.67B (91.48% of total volume)
Coin with highest % change: Uniswap $UNI +8.07%
📈 Preview On Today’s News:
- US Prosecutors Charge 18 Entities in Landmark Crypto Fraud Case
- US Regulators Tighten Grip on Crypto Sector with Record-High Settlements
- FBI Sting Operation Exposes Crypto Market Manipulation by Fraudsters
🔥Heat Map:
Top 10 News for today:
1)
US Prosecutors Charge 18 Entities in Landmark Crypto Fraud Case
In a groundbreaking move, US prosecutors in Boston have charged 14 individuals and 4 companies in the first criminal prosecution of financial firms for crypto market manipulation and fraud. Entities like Gotbit, ZM Quant, CLS Global, and MyTrade, along with their leaders, were targeted in this sweeping enforcement action. While five individuals have already pleaded guilty, the broader case highlights the risks and rising scrutiny of the crypto market in the US, where Americans lost $5.6 billion to scams in 2023 alone. The FBI notes that the combination of aggressive crypto promotion and “fear of missing out” has made retail investors particularly vulnerable.
Key Information: 14 individuals and 4 companies, including Gotbit, ZM Quant, CLS Global, and MyTrade, were charged for crypto market manipulation and fraud, marking the first criminal prosecution of its kind in the US.
Context: The case underscores the high level of fraud risk in the US crypto market, with the FBI reporting that Americans lost $5.6 billion to scams in 2023, fueled by a combination of hype and “fear of missing out” among investors.
2)
US Regulators Tighten Grip on Crypto Sector with Record-High Settlements
US regulators have intensified their focus on the cryptocurrency industry, amassing $32 billion in settlements from enforcement actions against errant players. The Commodity Futures Trading Commission's (CFTC) recent suit against FTX Limited and Alameda Research alone accounts for $12.7 billion, representing 40% of the total amount collected to date. This FTX-Alameda settlement, concluded in August 2024, stands as the largest penalty, more than triple the fines imposed on firms like Celcius ($4.7 billion), Terraform Labs ($4.5 billion), and Binance ($4.3 billion). The surge in regulatory actions has led to a 79% jump in total settlement values from 2023 to 2024, indicating a heightened focus on stamping out crypto fraud and increasing compliance across the sector.
US regulators have collected $32 billion in crypto settlements, with the CFTC’s $12.7 billion FTX-Alameda suit accounting for 40% of the total.
Regulatory scrutiny has surged, with 2024 seeing a 79% increase in settlement values compared to 2023, reflecting a strong push to curb crypto fraud and enforce compliance.
3)
FBI Sting Operation Exposes Crypto Market Manipulation by Fraudsters
The FBI, alongside the U.S. Securities and Exchange Commission (SEC), has charged several cryptocurrency firms, including Gotbit and ZM Quant, for engaging in market manipulation and fraud. As part of an undercover sting operation, the FBI created a fake token named "The NexFundAI Token" to lure fraudsters into offering illicit services, leading to the indictment of 12 individuals involved in these schemes. ZM Quant’s operators, Baijun Ou and Ruiqi Liu, allegedly inflated trading volumes and prices of various tokens, while Gotbit is accused of artificially boosting the trading volume of the Robo Inu token to $1 million. The SEC has also announced parallel civil charges, marking this as an unprecedented move in the fight against market-manipulation-as-a-service.
FBI Sting Operation: The FBI created a fake token, "The NexFundAI Token," as part of an undercover operation targeting 12 individuals and multiple companies, including Gotbit and ZM Quant, for market manipulation.
SEC Parallel Charges: The SEC announced civil charges alongside criminal actions, highlighting ZM Quant's manipulation of cryptocurrency prices and Gotbit's involvement in boosting the trading volume of the Robo Inu token.
