Crypto market maker CLS Global admits to wash trading on Uniswap after FBI investigation
Quick Take CLS Global agreed to plead guilty to wash trading charges following a sting FBI operation. The company is expected to pay $428,059 in seized crypto and penalties.

Dubai-based crypto market maker CLS Global has agreed to plead guilty to charges related to wash trading on decentralized trading platform Uniswap, the U.S. prosecutors for the District of Massachusetts announced Tuesday.
Upon court approval of the guilty plea, CLS Global will pay $428,059 to the government, including seized cryptocurrency and a fine, and will be prohibited from taking part in crypto transactions on platforms available to U.S. investors, the official statement said .
The company was indicted in September last year for one count of conspiracy to commit market manipulation and wire fraud and one count of wire fraud. These charges stem from an undercover FBI investigation into wash trading — a manipulative market practice that artificially inflates the trading volume of a certain asset to attract other investors.
In its undercover probe, the FBI created NexFundAI, an Ethereum-based token that traded on the Uniswap exchange. This helped chase down CLS and two other market making companies. The law enforcement has since disabled the crypto project.
According to the authorities, CLS admitted to providing wash trading services for NexFundAI, as evidently documented in several video conversations between July and August 2024.
“During several video conferences … a CLS Global employee explained that the company could ‘help with volume generation’ so that NexFundAI could meet cryptocurrency exchange listing requirements and attract purchasers of the NexFundAI token,” the prosecutors said.
The CLS employee allegedly said that the company used an algorithm that does self-trades, buying and selling from multiple wallets to make it less visible, organic and hard to track. CLS employed traders who bought and sold NexFundAI on Uniswap using the company’s trading wallets, according to the statement.
"I know that it's wash trading, and I know people might not be happy about it," the CLS employee allegedly said during one of the video meetings.
Meanwhile, the Securities and Exchange Commission is also pursuing a related civil enforcement action against CLS Global for alleged securities law violations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Crypto ETF Outflows Hit After 15-Week Inflow Streak
Crypto ETFs saw their first weekly outflow in 15 weeks, signaling a shift in investor sentiment amid new crypto regulations.‘Buy the Rumor, Sell the News’ in ActionWhat This Means for Crypto Markets

Tether CEO Paolo Ardoino: 40% of On-Chain Fees Paid in USDT
Tether’s Paolo Ardoino says 40% of on-chain fees are now paid using USDT, showing a rise in stablecoin utility.Stablecoin Utility is on the RiseWhat This Means for Crypto’s Future

Indonesia Considers Adding Bitcoin to National Reserves
Indonesia is exploring the possibility of including Bitcoin in its national reserves, signaling growing crypto adoption.Why Bitcoin Could Strengthen Indonesia’s ReservesIndonesia’s Growing Crypto Landscape

SharpLink SBET Treasury Fully Staked with 521,939 ETH
SharpLink’s SBET treasury reaches 521,939 ETH, fully staked—raising eyebrows across the crypto space.SharpLink Makes Bold Move with Massive ETH StakingWhat This Means for SBET HoldersEthereum Confidence at All-Time High

Trending news
MoreCrypto prices
More








