In 2024, the FBI created a fake cryptocurrency token called NexFundAI and hired market makers to pump its trading volume. The operation led to 18 indictments across the US, UK, and Portugal, and a single-day seizure of $25 million. The CEO of market maker Gotbit was arrested in Portugal, extradited to the US, and sentenced to eight months in prison with a forfeiture order of $23 million.
How the sting worked
The FBI developed NexFundAI as an ERC-20 token and contracted with firms like Gotbit, MyTrade, CLS Global, and ZM Quant to manufacture artificial trading activity. Gotbit charged $200 to push NexFundAI's daily volume to $1 million within six hours. CLS Global used bots to generate 98% of the token's total trading volume. ZM Quant ran 10 to 20 trades per minute through dozens of wallets to simulate organic market behavior.
Investor losses and restitution
Retail investors who bought NexFundAI during the sting lost money. The FBI set up a restitution portal to refund victims.
A public unmasking backfires
In May 2026, Evan Luthra publicly exposed NexFundAI as a fake token on X. Instead of tanking, the token's price surged 19x. The article speculates that people may not have read Luthra's full post, or that AI trading bots reacted to social signals and bought the token automatically.
The case raises unresolved questions about how easily market manipulation can be automated, and whether restitution will reach all affected investors. No timeline has been set for the next court hearings.
