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On Tuesday, a cryptocurrency financial services firm based in the United Arab Emirates, CLS Global, agreed to plead guilty to U.S. charges. It was part of a group of three companies and 15 individuals targeted by federal prosecutors in Boston. The investigation, known as "Operation Token Mirrors," was a unique FBI initiative to expose fraud in the cryptocurrency sector. CLS Global was involved in manipulating the market for a digital token developed by the FBI to identify fraudulent activities.

CLS Global did not offer any comments on the matter through its legal representative. Nonetheless, the company has emphasized its commitment to compliance and ensuring its operations were distinct from U.S. markets and regulatory frameworks.

Prosecutors revealed that CLS Global, among other market makers, engaged in illicit trading activities with cryptocurrency companies. They cooperated in manipulating the market for NexFundAI's token, backed by the FBI on the Ethereum blockchain. The fraudulent practices included wash trading, artificial strategies to inflate trading volume or prices.

As part of the plea agreement, CLS Global admitted to the fraudulent activities and agreed to settle by paying $428,059. In addition, the firm will be prohibited from engaging in cryptocurrency transactions on U.S. trading platforms or serving U.S. cryptocurrency clients. CLS Global will also be required to provide annual certifications on its business practices and resolve related civil charges with the U.S. Securities and Exchange Commission.