A UAE-based crypto market maker, CLS Global, has admitted to conducting a sophisticated wash trading scheme on Uniswap, generating millions in fake trading volume through automated self-dealing. Following an FBI sting operation, CLS Global is expected to plead guilty to market manipulation and wire fraud charges, which were part of a broader initiative aimed at tackling fraudulent activities in the crypto sector. Under the plea agreement, CLS Global will pay over $428,000 in penalties and will be banned from U.S. crypto markets, required to file annual compliance certifications. The FBI baited CLS Global with a fake cryptocurrency named NexfundAI while undercover agents gathered evidence of the operation. CLS Global employed over 50 staff and claimed to provide legitimate market-making services to more than 500 clients while secretly running algorithms to manipulate market volumes. Their actions reportedly generated $595,000 in artificial trading volume for NexfundAI, constituting 98% of its overall activity, highlighting the challenges in monitoring such operations in the crypto space.

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