The fraudsters allegedly used multiple trading bots for the wash trades.
The FBI created its own cryptocurrency company and crypto token in order to bait fraudsters who would make fake trades in order to boost the price before cashing out, according to a press release from the U.S. Department of Justice. The FBI operation, dubbed Operation Token Mirrors, was unprecedented in the crypto space and 18 individuals and entities have been charged over their alleged fraud and manipulation in indictments announced on Wednesday.
Screenshot from a crypto fraud indictment unsealed Oct. 9, 2024 showing a Pepe “Pump It” meme. Screenshot: DOJ “We have an algorithm that … basically does self-trades, buying and selling, and the only expenses you have are the gas fee and the exchange fee.” “We do that by transferring the funds into multiple wallets, that could be as many as you guys wish . . . from which we do the buying and selling . . . and generate some desired number for you. We decide some number we wish to generate per day . . . can be 100,200,300k, doesn’t matter, and then we generate these number… on a 24-hour timeframe.”“I know that it’s wash trading and I know people might not be happy about it.
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