US prosecutors have charged four cryptocurrency firms and 14 individuals in what they described as the first criminal prosecution targeting market manipulation and fraudulent trading in the crypto industry.
The charges were announced Wednesday by federal prosecutors in Boston.
The companies named in the lawsuit are Gotbit, ZM Quant, CLS Global and MyTrade. The indictment alleges that the leaders and employees of these companies were involved in fraudulent activities aimed at manipulating cryptocurrency markets. The investigation also led to arrests abroad, indicating that the case has reached international dimensions.
Prosecutors said five people have pleaded guilty or agreed to plead guilty as part of ongoing trials.
Following the development, the price of Quant (QNT), a related altcoin listed on Binance and Coinbase, was negatively affected.
*This is not investment advice.