FBI creates its own NexFundAI token to expose crypto fraudsters

The FBI created its own cryptocurrency to monitor how fraud suspects use it. The idea really worked and led to arrests in several countries. This was reported by The Register.

The token in question is NexFundAI, which was created on the basis of Ethereum. According to the U.S. Department of Justice, 18 people have been charged with "large-scale fraud and manipulation in the cryptocurrency markets."

In addition, the U.S. Securities and Exchange Commission has indicted three "market makers" and nine other individuals for manipulating crypto assets.

According to the FBI, some of the frauds involved transactions conducted solely to increase the volume of trading in securities or other assets. In other words, this creates artificial market activity that misleads investors.

The U.S. Securities and Exchange Commission explains that such frauds are intended to encourage victims to buy crypto assets.

"The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice," said Jodi Cohen, Special Agent in Charge of the FBI's Boston Field Office. "What the FBI uncovered in this case is essentially a new twist to old-school financial crime."

Arrests of individuals potentially involved in the fraud were made in the United Kingdom, Portugal, and the United States.