SEC v. CLS Global FZC LLC and Andrey Zhorzhes

CLS Global FZC LLC and Andrey Zhorzhes allegedly engaged in a scheme to manipulate the market for “NexFundAI,” a crypto asset being offered and sold as a security to retail investors. According to the SEC’s complaint, CLS Global was hired to provide market-manipulation-as-a-service, which included generating artificial trading volume for the NexFundAI crypto asset that the alleged promoters offered and sold as a security to retail investors in unregistered transactions. The SEC alleges that CLS Global and Zhorzhes manipulated the market on behalf of the alleged promoters by trading NexFundAI in a manner that served no economic purpose, and that they used an algorithm that generated artificial trading volume.

Summary generated from official Securities and Exchange Commission press release