FBI’s Crypto Coin Scheme Exposes Fraudsters

In a groundbreaking operation, the FBI created a counterfeit Ethereum-based cryptocurrency called NexFundAI to catch crypto fraudsters involved in pump-and-dump schemes. This undercover initiative exposed 18 individuals and entities, leading to charges of crypto market manipulation. The investigation recovered $25 million, which authorities plan to return to defrauded investors. However, some retail investors who were not part of the fraud were also impacted by the scheme’s fallout. NexFundAI’s trading platform has since been disabled, as the Department of Justice revealed the details of this intricate sting. The operation reflects law enforcement’s growing efforts to tackle crypto fraud by exploiting cybercriminals’ reliance on decentralized markets. The move highlights the increasing complexity of financial crimes and the FBI’s use of innovative methods to combat them.