UAE-based financial services company CLS Global has been fined $428,059 after allowing it to wash away transactions in the US cryptocurrency market. The company pleaded guilty to market manipulation and wire fraud claims after a sting operation led by the FBI. This fee relates to CLS Global’s role in manipulating cryptocurrency trading volumes to attract investors.
CLS Global ruled in federal court in Boston on April 2, 2025, and was ordered to pay the fines, including both seized cryptocurrencies and monetary fines. Additionally, the company is sentenced to three years of probation, during which time it is prohibited from participating in the cryptocurrency market, which US investors can access. The company’s actions were revealed during a secret investigation aimed at detecting fraudulent activities such as laundry transactions.
This case stems from its involvement with CLS Global, a cryptocurrency company and Ethereum-based token NexFundai, created by the FBI as part of its operations targeted at market manipulation. CLS Global has agreed to provide market production services to Nexfundai. This involved artificially inflated the volume of Uniswap, a decentralized exchange. CLS Global used an algorithm that mimics natural buying and selling by allowing self-trading across multiple wallets, and appears to have legitimate market activity. The company’s goal was to help NexFundai meet the listing requirements for exchanges and create a false impression of market demand.
In a 2024 video conference with law enforcement, CLS global employees admitted to using algorithms to engage in laundry transactions, acknowledging that the practice was deceptive. “I know it’s a laundry deal, and I know people might not be happy about it,” the employee said. The company’s manipulation of the market led to fraudulent trading activities designed to seduce investors.
As part of the judicial agreement, CLS Global is also facing civil enforcement action from the Securities and Exchange Commission (SEC) claiming its violation of securities laws. Funds seized from CLS Global will be praised in both criminal and civil resolutions. The company is prohibited from serving US-based clients or participating in the US cryptocurrency market during probation.
CLS Global, which employs more than 50 people in the UAE, currently faces significant legal and economic consequences for its actions. The case highlights growing concerns about the manipulation of the cryptocurrency market and highlights the continued efforts of US authorities to curb fraud in the crypto space. The FBI’s businesses targeting laundry trade and other deceptive activities are a reminder of the scrutiny cryptocurrency companies are currently facing as regulators take action to protect investors.