Crypto market maker CLS Global pleads guilty after FBI's entrapment operation and investigation in the US

According to Reuters, CLS Global, a cryptocurrency financial services company based in the United Arab Emirates, agreed on Tuesday to plead guilty to US charges that it had provided services to assist in market manipulation involving a digital token created at the request of the FBI to expose fraud in the cryptocurrency industry. CLS Global is one of three companies and 15 individuals prosecuted by federal prosecutors in Boston last year following an undercover investigation into the "Token Mirrors" operation, marking the first time the FBI has personally guided the creation of digital tokens and set up counterfeit cryptocurrency companies to lure fraudsters. The prosecutor pointed out that CLS was one of three market makers who provided illegal trading services to cryptocurrency companies and agreed to assist in manipulating the FBI backed NexFundAI token (running on the Ethereum blockchain) market during the entrapment operation. CLS admitted in court documents that it agreed to provide services, including fraudulent transactions, for NexFundAI tokens. On Tuesday, prosecutors announced that CLS will plead guilty to two charges of fraudulent manipulation of cryptocurrency trading volume and pay a fine of $428059. In addition, CLS will be prohibited from participating in cryptocurrency trading on trading platforms available to US investors, or providing services to US cryptocurrency customers. CLS Global has also committed to annual certification of its business practices and agreed to resolve relevant civil charges brought by the US Securities and Exchange Commission (SEC).