US Court Fines CLS Global $428,059 for Wash Trading

A federal court in Boston has fined the UAE-based market maker CLS Global $428,059 and banned it from operating in the United States for three years.

The sentence was handed down on criminal charges related to fraudulent manipulation of cryptocurrency trading volumes.

On January 21, CLS Global pleaded guilty to wash trading. The charges were brought as part of an operation by the FBI involving the introduction of an Ethereum-based AI token called NextFundAI (NEXF).

The token was used to “identify, disrupt, and hold accountable alleged fraudsters.”

CLS Global fell for the ruse and agreed to provide “market-making services” for NEXF, including a fraudulent scheme to lure investors into purchasing the token.

In October 2024, the FBI charged 18 individuals and organizations in this case, including executives from CLS Global, Gotbit, ZM Quant, MyTrad, and other projects.

At that time, the US Securities and Exchange Commission (SEC) filed additional charges against CLS Global and its employee Andrey Georges.

The SEC initiated proceedings against two other participants in the scheme—Hong Kong-registered ZM Quant Investment and Russia’s Gotbit Consulting.

As of writing, CLS Global continues to operate and boasts over 110,000 followers on X.

Back in February 26, 2025, Gotbit founder Alexey Andryunin was extradited from Portugal to the US to face charges in a cryptocurrency fraud case.