Cryptocurrency
SEC Exposes Massive Crypto Market Manipulation Scheme
![](https://letizo.com/wp-content/uploads/2024/10/sec-exposes-massive-crypto-market-manipulationscheme_670acdb3715a9.jpeg)
U.S. authorities, including the Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ), have charged Gotbit and four other crypto firms with widespread market manipulation.
The charges also roped in several individuals who worked for the offending organizations.
Market Makers Accused of Running Wash Trading Scheme
According to a statement the SEC issued on October 9, Gotbit, ZM Quant, CLS Global, and MyTrade MM used bots to inflate trading volumes on centralized exchanges (CEXs) through wash trading.
A parallel statement from the Massachusetts U.S. Attorney’s office included popular meme coin projects Saitama and Robo Inu among those with complaints issued against them.
The SEC claims that the named companies engaged in “pump and dump” schemes, where they misrepresented the value of certain tokens, prompting new investors to buy in only to cash out at inflated prices.
In total, law enforcement officials seized $25 million in cryptocurrency. Furthermore, they deactivated bots responsible for millions of fraudulent transactions across 60 different crypto assets.
Saitama Employees Named in Complaint
Prominent names fingered in the investigations include Russell Armand, Maxwell Hernandez, and Manpreet Kohli. They and fellow Saitama employees Nam Tran and Vy Pham are accused of using Gotbit and ZM Quant to provide market manipulation services, including generating fake trading volumes for assorted cryptocurrencies.
Kohli and Tran face additional charges of conspiracy to commit wire fraud and running an unlicensed money-transmitting business.
According to the U.S. Attorney’s office, Armand and Hernandez have already pleaded guilty to the exact charges as those leveled against Kohli and Tran. In addition, California-based Pham also confessed to being involved in unlawful conduct at Saitama and another unnamed crypto company.
Others indicted in the U.S. District Court in Boston include Gotbit’s Aleksei Andriunin, Fedor Kedrov, and Qawi Jalili, as well as Riqui Liu and Baijun Ou of ZM Quant.
The investigation, which began in 2017, uncovered that the suspects used bots to create quadrillions of fake transactions, amounting to billions in artificial trading volume daily. These activities caused unsuspecting retail investors to buy tokens at inflated prices, only to suffer massive losses when Gotbit and its co-accused firms dumped their holdings.
A crucial turning point in the investigation came when the FBI created a cryptocurrency called NexFundAI to gain access to the inner workings of the market-making firms.
NexFundAI, which was still actively trading at the time of this writing, with a market cap of around $237,000, was designed to appear as a legitimate project linking crypto and AI. It seemed to have worked as intended, attracting the market manipulators who believed they could exploit it.
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Cryptocurrency
Cardano Price Analysis: Can ADA Crash Below $0.7 This Week?
![](https://letizo.com/wp-content/uploads/2025/02/cardano-price-analysis-can-ada-crash-below-0-7-thisweek_67a3bbabf1474.jpeg)
Cardano’s price has experienced a massive drop recently following the Ethereum crash. However, things are still looking more positive for ADA, compared to ETH.
By Edris Derakhshi (TradingRage)
The USDT Paired Chart
Against USDT, the cryptocurrency has been consolidating between $1.2 and $0.8 over the past few months, forming a large descending channel pattern.
However, it broke down to the downside during the crypto market crash led by Ethereum, and ADA’s price briefly traded below its 200-day moving average, located around the $0.6 mark, before rebounding higher.
Currently, the price is trying to hold above the $0.8 support level, which would be vital if a bullish shift is bound to occur soon.
The BTC Paired Chart
The ADA/BTC chart shows a somewhat similar picture to that of the USDT-paired one. However, ADA is weaker than BTC.
The market has lost a key support level at 900 SAT and is now testing the 200-day moving average, which is located around the 750 SAT level.
In case of a breakdown, a deeper drop toward the 500 SAT area would be imminent. However, as the RSI is showing a clear oversold signal, a pullback toward the 900 SAT level looks more likely at the moment.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
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Cryptocurrency
BitMEX Launches 20 New Altcoin Options Featuring LTC, SUI, LINK, and More
![](https://letizo.com/wp-content/uploads/2025/02/bitmex-launches-20-new-altcoin-options-featuring-ltc-suilink-and-more_67a3bbb2b4019.jpeg)
[PRESS RELEASE – Mahe, Seychelles, February 5th, 2025]
BitMEX, a longstanding cryptocurrency derivatives exchange, has introduced 20 new options contracts, expanding its offerings to include a wider range of altcoins. Traders now have access to options contracts for Litecoin (LTC), Sui (SUI), Chainlink (LINK), Aave (AAVE), and additional assets, providing more instruments for risk management and market engagement.
BitMEX Options provides traders with access to robust market depth and minimal price fluctuations through an Orderbook and a Request-for-Quote (RFQ) interface. The platform supports both single-leg and multi-leg options trading with competitively low minimum sizes. Additionally, the Strategies Dashboard streamlines the execution of advanced options strategies, offering a more efficient trading experience.
Stephan Lutz, CEO of BitMEX said, “With the markets showing more volatility than ever, traders have an opportunity to push their strategies further, and we want to ensure they have every advantage. With this expansion, BitMEX is delivering what traders demand – a wider range of assets whilst empowering them with cutting-edge features that make executing sophisticated strategies effortless. With the addition of 20 new altcoin pairs, it reinforces our commitment to making BitMEX the go-to platform for options trading.”
Options traders can now access options pairs for BTC, ETH, AAVE, ADA, APT, AVAX, BCH, DOGE, FIL, ICP, LDO, LINK, LTC, MMPEPE, MMSHIB, MNT, OP, ORDI, SOL, SUI, TON, TRX, UNI, WLD, and XRP – totalling 26 pairs available for trading on BitMEX Options.
Users can sign up for BitMEX and explore trading options at https://www.bitmex.com/app/options.
About BitMEX
BitMEX is the OG crypto derivatives exchange, providing professional crypto traders with a platform that caters to their needs through low latency, deep crypto native liquidity, and unmatched reliability.
Since its founding, no cryptocurrency has been lost through intrusion or hacking, allowing BitMEX users to trade safely in the knowledge that their funds are secure.
BitMEX was also one of the first exchanges to publish their on-chain Proof of Reserves and Proof of Liabilities data. The exchange continues to publish this data twice a week – providing assurance that they safely store and segregate the funds they are entrusted with.
For more information on BitMEX, users can visit the BitMEX Blog or www.bitmex.com, and follow Telegram, Twitter, Discord, and its online communities.
For further inquiries, users can contact press@bitmex.com.
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Cryptocurrency
Ethereum Price Analysis: ETH Plunges 10% Weekly, What’s the Next Target?
![](https://letizo.com/wp-content/uploads/2025/02/ethereum-price-analysis-eth-plunges-10-weekly-whats-thenext-target_67a3bba55dcf8.jpeg)
Ethereum’s price is yet to recover from the drop it has been experiencing lately. Therefore, more downside could be expected in the coming weeks.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the price has been making lower highs and lows since getting rejected from the resistance at $4,000. Several support levels have been lost in the last few months, especially the 200-day moving average, located around the $3,000 mark.
While the price has already dropped to the $2,200 support and rebounded, there is still the chance for the market to decline lower as long as the cryptocurrency remains below the 200-day moving average.
The 4-Hour Chart
Looking at the 4-hour timeframe, the price has gradually declined inside a large falling wedge pattern. While the market broke the pattern to the downside on Monday, it recovered, reclaiming the $2,800 level. Yet, the RSI still shows values below 50%, indicating that the momentum is still bearish.
Therefore, if the price does not break back above the $3,000 level soon, a deeper correction or a longer consolidation could be expected in the coming weeks.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Ethereum Open Interest
As Ethereum’s price is in a steep downtrend, market participants wonder where the price will finally find support. Analyzing the futures market sentiment could provide helpful insights into this situation.
This chart presents the Ethereum funding rates metric, which measures whether the buyers or the sellers are executing their orders aggressively (using market orders) on aggregate. Favourable funding rates indicate bullish sentiment, while negative values show bearish sentiment.
As the chart suggests, the funding rates have dropped significantly following the recent crash. Judging by its current values, it is safe to say that the futures market is no longer overheated. However, without sufficient demand in the spot market, the market will not be able to recover any time soon.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
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