A federal court in Boston has fined the UAE-based crypto financial services firm CLS Global $428,059 following charges of fraudulent manipulation of crypto trading volume. This ruling, announced on April 2, 2025, also prohibits CLS Global from offering services in the US for a probationary period of three years. The charges arose from an undercover operation involving an FBI 'trap token' called NexFundAI, which CLS Global and other firms allegedly manipulated to attract investors. CLS Global was found to have committed market manipulation and wire fraud, resulting in its employee facing additional fraud charges from the Securities and Exchange Commission. Founded in 2017 by CEO Filipp Veselov, CLS Global aimed to provide high-quality market-making solutions. Wash trading, the practice CLS was charged for, involves creating a misleading perception of demand in the market, contributing to significant estimated wash trading volumes in the crypto sector.

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