The post US Court Fines UAE-Based CLS Global for Crypto Fraud appeared on BitcoinEthereumNews.com.

CLS Global fined $428K for fraudulent cryptocurrency trading activities. U.S. court bars CLS Global from crypto markets for three years. CLS Global FZC LLC, a financial services company based in the United Arab Emirates, has come under legal scrutiny in the United States for its role in manipulating cryptocurrency markets. The firm received a $428,000 federal court financial penalty from Boston judges because it engaged in deceptive trading practices focused on fraudulent crypto trading operations. CLS Global Misled Investors with Artificial Token Activity CLS Global operated from its headquarters abroad yet delivered cryptocurrency-related services which extended to U.S.-based investors as well as platforms all across the world. The company worked as a market-making entity in crypto to strengthen digital tokens through active trading. The authorities found evidence that portions of the recorded trading activities actually lacked authenticity. On the other hand, the U.S. government investigated “wash trading” which describes a fraudulent activity where companies buy and sell their own assets repeatedly within their internal accounts. The fake activity fools investors into believing a cryptocurrency gains momentum when it is only artificially generated. The government pursued CLS Global through its investigation, which began when police made a false cryptocurrency project named NexFundAI. The CLS Global team signed up to conduct artificial trading operation on a trading exchange to boost the token market visibility. Company representatives disclosed online how they would raise volume using automated trading code, which simulated organic trading activities despite their artificial nature during multiple virtual meetings. In addition, staff members at CLS Global outlined to court officials that their trades executed through numerous wallets produced obstruction in tracking the manipulations. The employee admitted that wash trading existed yet noted it could face negative reaction from regulators. The company moved ahead with its plan even as legal dangers became…

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Filed under: News - @ April 4, 2025 9:23 pm