CLS Global FZC LLC, a financial services firm involved in the cryptocurrency sector, was sentenced in a Boston federal court for manipulating cryptocurrency trading volumes. The company, known as a "market maker," must pay $428,059 in fines and seized cryptocurrency and serve three years of probation, during which it is barred from participating in U.S. cryptocurrency markets. The firm pleaded guilty to charges of conspiracy to commit market manipulation and wire fraud in January 2025, following their initial charges in September 2024.
Based in the United Arab Emirates but serving U.S. investors, CLS Global offered market making services that included fraudulent "wash trading" to mislead investors. This followed an undercover operation which led to the creation of NexFundAI, a fake cryptocurrency company. CLS Global’s employee described the fraudulent activities during videoconferences, explaining the use of an algorithm that masked trading as organic. The employee noted, “It’s very hard to track. . . . We’ve been doing that for many clients.”
The enforcement action was announced by U.S. Attorney Leah B. Foley and Jodi Cohen of the FBI's Boston Division. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb are prosecuting, with Assistant U.S. Attorney Carol Head handling forfeiture.
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