Analysis News TheBitTimes.com

The FBI has charged eight companies for operating an alleged pump-and-dump scheme after creating a fake crypto token, NexFundAI, as part of an undercover sting. Crypto companies Saitama, Robo Inu, VZZN and Lilian Finance, and market makers Gotbit, ZM Quant, CLS Global and MyTradeMM were all accused of working together to manipulate the prices of over 60 low cap coins. Suits against these companies were filed on Oct. 9 by the US Securities and Exchange Commission ( SEC ). FBI Launches NexFundAI After SEC’s Saitama Tip Off The FBI received a tip off from the SEC that Saitama was engaging in market manipulation to increase its token’s price and make investors believe that there was interest in the project. Eventually, the investigation into the project led to the launch of NexFundAI, a fake token created by the FBI to observe how these on-demand market makers operated. The fake crypto only traded for 24 hours on May 31. During this period, it generated $4,600 in artific...

On August 29, 2024, U.S. District Judge Alvin Hellerstein dismissed a significant lawsuit against Elon Musk and his company, Tesla , which alleged market manipulation of Dogecoin (DOGE) . The lawsuit, initiated by a group of disgruntled investors in June 2022, claimed that Musk and Tesla artificially inflated the cryptocurrency’s price, resulting in a staggering $258 billion in damages. The court ruling dismissed these claims, stating they were based on non-factual statements. Court’s Decision Judge Hellerstein’s ruling characterised Musk’s statements about Dogecoin as “aspirational and puffery” rather than actionable claims. In his decision, Hellerstein emphasised that “no reasonable investor could rely upon” Musk’s social media posts or public declarations as a basis for making investment decisions. The judge specifically cited Musk’s assertions about becoming the “official CEO of Dogecoin” and placing a “literal Dogecoin” on a SpaceX rocket as examples...