SEC Files Lawsuit Against Firms for Alleged Crypto Market Manipulation

The U.S. Securities and Exchange Commission (SEC) has initiated legal action against three firms—ZM Quant Investment, Gotbit Consulting, and CLS Global—accusing them of manipulating cryptocurrency markets through wash trading. According to NS3.AI, the SEC claims these companies employed algorithm-driven matched orders to fabricate trading volumes and liquidity, thereby misleading retail investors. The lawsuit, filed in a Massachusetts federal court, seeks injunctions, financial penalties, disgorgements, and bans on key officers involved. This case underscores the SEC's ongoing commitment to enforcing regulations in the crypto asset sector.