Major Crypto Services Firm Admits to Wash Trading as Part of DOJ Settlement

The United States Department of Justice (DoJ) has taken action against CLS Global FZC LLC, a cryptocurrency financial services firm accused of fraudulent trading practices. According to the DoJ in a press release uploaded on January 21, CLS Global has agreed to plead guilty to charges of conspiracy to commit market manipulation and wire fraud. The company’s plea stems from allegations that it engaged in 'wash trading' to manipulate the trading volume of certain cryptocurrencies. As part of the agreement, CLS Global is said to pay $428,059 in penalties and restitution, and it will be prohibited from participating in cryptocurrency markets accessible to US investors. The charges follow a lengthy investigation that included undercover operations and targeted fraudulent activities within the digital asset space.