Crypto Market Maker Hit With $428,000 Fine Over Wash Trading
Summary
CLS Global, a financial services firm specializing in market making, was fined $428,059 for wash trading after pleading guilty in a Boston court. The firm is prohibited from participating in U.S. cryptocurrency markets for three years during probation. The charges stemmed from an undercover operation targeting sham trading, with CLS Global agreeing to provide services for NexFundAI, a fake cryptocurrency firm created by the FBI. The firm admitted to using an algorithm for self-trades to mimic organic market activity. CLS Global pleaded guilty to conspiracy to commit market manipulation and wire fraud.
