A federal court in Boston fined CLS Global, a UAE-based cryptocurrency firm, $428,059 for fraudulent market manipulation on April 2, 2025. The fine comes as part of Massachusetts' crackdown on illegal practices in the cryptocurrency market. CLS Global has been prohibited from offering services in the US for a three-year probation period. The charges against the firm were linked to an undercover operation involving the FBI's trap token NexFundAI, wherein CLS Global and other firms provided market-making services that falsely inflated trading volumes to attract investors. CLS Global had previously admitted to committing market manipulation and wire fraud in January 2025. The Securities and Exchange Commission had also filed charges against CLS Global and its employee Andrey Zhorzhes for fraudulent transactions related to NexFundAI. CLS Global, founded in 2017 to provide market-making solutions, has faced serious legal repercussions as regulations tighten around cryptocurrency activities.

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