FBI Crypto Unit Honeypots Scammers With FBI Meme Coin

FBI crypto unit built an FBI meme coin in Operation Token Mirrors, taking down huge scammers such as Saitama and GotBit in the process.

Meme coins are all the rave right now.

From MooDeng, Bonk , Bome, Pepe, and all other top, new, and old meme coins, retailers can’t let them go.

As they hook on, ready for mega gains, meme coins have also become vehicles of scammers.

Exhilarating and fun-filled as meme coins are, the fact that there are rug pulls and some fail to be liquid as expected means holders are left with mud on their hands and cannot be wished away.

FBI Creates Meme Coin to Lure Wash Traders

Given their popularity, the United States Federal Bureau of Investigation (FBI) had to create a meme coin to lure and arrest 14 individuals and four crypto firms.

The investigative agency claims they are involved in a complex web of market manipulation and “wash trading” schemes.

After creating and listing the NexFundAI meme coin on Ethereum in an operation dubbed “Operation Token Mirrors,” the FBI successfully trapped four crypto firms, Gotbit, CLS Global, MyTrade, and ZM Quant, as well as the 14 individuals involved in manipulating crypto prices via wash trading, which is outlawed in the United States.

The NexFundAI token is still being traded, per DEXScreener trading streams. The token has a market cap of over $86,000.

( DEXScreener )

In wash trading, agents, in this case, the four firms and individuals named, artificially inflated trading volume to attract unsuspecting traders or investors.

With higher “fake volume”, unsuspecting traders are misled the market is active than it is truly is.

At one point, one of the meme coins pumped by these agents, Saitama, had a market cap of over $7.5 billion. Afterward, the founders dumped the token, netting millions of dollars in profits.

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Over $25 Million Seized In Operation Token Mirrors

The United States Department of Justice  said it seized over $25 million worth of cryptocurrency from this operation.

Interestingly, of the four crypto firms, Gotbit claims to be a crypto hedge fund that creates markets for meme coins.

Its CEO was arrested in Portugal and will be extradited to the United States to face justice.

The United States seeks permanent injunctions and further penalties, such as disgorgement, to recoup ill-gotten profits from all the defendants.

These individuals will also likely face prison time.

( Source )

Furthermore, in a hilarious twist, spin-off meme coins are already exploding, such as the funny $NOTFBI meme coin on Pump.Fun.

READ MORE: France Welcomes MiCA Applications As Bybit Exits The Country

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.