The U.S. Securities and Exchange Commission (SEC) is cracking down on crypto market manipulation. Nine individuals and three companies have been charged with using fraudulent schemes to artificially inflate cryptoasset values and trading volume. Crypto market manipulation, including wash trading, has been a major concern for regulators. This fraudulent practice involves buying and selling the same cryptoasset to generate fake trading volume, making the asset appear more attractive to investors. The SEC charged two companies, ZM Quant and Gotbit, for offering “market-manipulation-as-a-service” and manipulating trading volumes or prices of certain cryptoassets. The operation by the SEC marks the first of its kind, and the regulator’s actions signal a new chapter in the regulation of the crypto industry.
Source: crypto market