- CLS Global pleads guilty to wash trading on Uniswap, facing fines and business restrictions.
- Ripple partners with DIFC Innovation Hub to drive blockchain adoption in the UAE and foster innovation.
Dubai-based crypto liquidity provider CLS Global recently agreed to enter a guilty plea to market manipulation allegations concerning “wash trading” on the Uniswap platform.
The action fit an FBI probe called “Operation Token Mirrors,” meant to expose crypto market manipulation. The FBI developed a fictitious coin called NexFundAI as part of the probe to encourage illegal trading behavior and reveal the manipulation.
JUST IN: CLS GLOBAL, A DUBAI-BASED CRYPTO MARKET MAKER, AGREES TO PLEAD GUILTY TO WASH TRADING CHARGES ON UNISWAP
— BSCN Headlines (@BSCNheadlines) January 22, 2025
Clampdown on Wash Trading Exposes Manipulative Market Tactics
CLS Global was discovered during the probe to have traded NexFundAI tokens on the Ethereum blockchain using methods meant to artificially raise their volume and price. Known as “wash trading,” this is the process by which a corporation trades assets with itself to project strong market demand. The company is thus not only subject to legal action but also liable for a $428,059 fine.
Furthermore, CLS Global is prohibited from engaging in crypto trading platforms catering to American investors, which must give annual certifications to guarantee its company operations stay clear-cut.
The crackdown reminds us of the increasing criticism directed at digital asset market manipulation. Especially in view of the industry’s explosive expansion, such legal enforcement seeks to guarantee that the crypto market stays fair and open.
On the other hand, as we previously reported, Ripple has teamed with the DIFC Innovation Hub to hasten blockchain acceptance in the UAE and foster innovation by means of collaboration.
The partnership seeks to link the next generation of developers with the biggest innovation ecosystem in the area, which comprises over 1,000 early-stage tech startups, digital laboratories, venture capital companies, authorities, and universities.
