The FBI has developed its own cryptocurrency to track fraud suspects, an approach that has led to arrests in several countries. As informs Reuters, thanks to which a large-scale network of manipulations in the cryptocurrency markets was exposed.
The created token called NexFundAI is based on the Ethereum platform. According to the US Department of Justice, 18 people have been charged with “large-scale fraud and manipulation of cryptocurrency markets.” In addition, the US Securities and Exchange Commission indicted three market makers and nine other individuals for illegal crypto-asset transactions.
According to the FBI, some of the fraudulent operations consisted of transactions designed to create artificial activity in the markets. This misled investors, encouraging them to buy assets.
The unprecedented step taken by the FBI was to create its own cryptocurrency token and company to identify and prosecute fraudsters.
“What the FBI found in this case is a new twist on old financial crimes”, – said Jody Cohen, special agent in charge of the Boston Division of the FBI.
Arrests of persons involved in the manipulations took place in Great Britain, Portugal and the USA.
