The FBI launches NexFundAI token to target crypto manipulators, using it as bait to expose fraudsters and enhance market transparency.
The FBI has launched a new Ethereum-based token, NexFundAI, aimed at identifying and trapping cryptocurrency market manipulators. This move is part of the Bureau’s ongoing efforts to tackle fraud and manipulation in the crypto industry, according to Lookonchain.
NexFundAI is designed to be bait for scammers in the crypto environment since the contract’s code contains a backdoor. This is based on on-chain data showing that a wallet financed the token that manipulated $SAITAMA.
The manipulator invested only $7,357 to acquire 875.8 trillion $SAITAMA and then sold a significant part of it for $8.85 million. The wallet then sent 737 trillion $SAITAMA (equivalent to $2.75 million) to popular exchanges such as OKEx and Gate.io. The operator later sold $SAITAMA back for a mere $ 253,000. The wallet earned more than 11 million tokens by manipulating the token.
An additional breakdown of the token distribution reveals that over 75% of NexFundAI is currently held in FBI wallets. This stronghold can enable the Bureau to track any market activities of the token. The FBI has invited anyone who fell victim to fraudulent schemes to report their cases to the agency.
SEC Files Lawsuits Against Three Firms Amid FBI Crypto Manipulation Probe
The FBI’s investigation has already led to legal actions, with the Securities and Exchange Commission (SEC) filing lawsuits against three companies: Gotbit Consulting, ZM Quant Investment, and CLS Global. The Bureau is also monitoring other tokens associated with market manipulation, such as Robo Inn, VZZN, and Lillian Finance.
The statement added that in these on-chain investigations, the FBI seeks to deter others from manipulating the crypto markets. This move with NexFundAI shows the agency’s increasing engagement in overseeing the cryptocurrency market. This move by the FBI suggests that authorities are now more forceful in addressing fraud and protecting the cryptocurrency sector.
Ultimately, the FBI’s development of NexFundAI is a step toward eliminating cryptocurrency market manipulation. The idea is to use the token as a lure for fraudsters to reveal themselves and increase the bureau’s transparency in the crypto sphere. This and the other legal cases demonstrate the agency’s desire to safeguard investors. These steps will ensure that the digital asset market is transparent and free of fraud.
