The U.S. Securities and Exchange Commission (SEC) has filed charges against three cryptocurrency companies—ZM Quant, Gotbit, and CLS Global—accusing them of market manipulation. The SEC alleges these firms used algorithms to conduct wash trading, creating fake trading volumes to mislead retail investors. Additionally, nine individuals face charges for violating anti-fraud and registration provisions of securities laws by employing manipulation services and executing economically insignificant trades. The charges stem from an FBI sting operation that revealed the companies' involvement in fraudulent activities, including the creation of the fake token NexFundAI. This operation has led to charges against 15 entities and the initiation of related criminal proceedings. SEC officials emphasized the harm caused to retail investors through deceptive tactics and false promises.