Four so-called market makers in several cryptocurrency projects, and over a dozen people were accused by federal prosecutors on Wednesday of manipulating the cryptocurrency markets.
Gotbit, CLS Global, MyTrade, and ZM Quant are accused of engaging in wash trading in a number of tokens, giving the impression that there was far more legitimate activity than there actually was.
They are also accused of selling these tokens to third parties at "artificially inflated prices," promoting them on well-known platforms, and persuading exchanges to allow them to purchase the tokens at a reduced cost.
The market maker defendants, according to the prosecution, gave clients illegal services, such as wash trading, in private despite publicly posing as respectable market makers offering legal services.
Robo Inu is one of the manipulated tokens on the list; it gained popularity after the indictment was made public.
Other projects that are being accused are Saitama and VZZN.
Every token, including Robo Inu, is categorized as a security under the indictment. Vy Pham, the founder of Robo Inu, and other participants in these projects are also listed as defendants.
Information derived and inspired from: Binance
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