CLS Global, a United Arab Emirates-based crypto financial services firm, has pleaded guilty to charges of fraudulent manipulation of cryptocurrency trading volumes and wire fraud, related to its role in wash trading a token developed by the FBI named NEXF. This token was created to attract individuals involved in fraudulent crypto activities. As part of the plea agreement, CLS Global will pay a fine of $428,059 and forfeit its funds held in accounts on crypto exchanges Binance and KuCoin. CLS admitted to manipulating trading volumes to mislead investors about NEXF's popularity. The firm is now barred from participating in crypto transactions on trading platforms available to US investors and will be on probation for three years while making annual certifications to the SEC regarding its compliance. Additionally, the SEC has filed separate civil charges against CLS for violations of securities laws. This case marks a significant effort by the FBI to utilize a digital token to expose market fraud.

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