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FBI created Crypto Assets for "phishing law enforcement"
On October 10, the United States Federal Bureau of Investigation (FBI) created a fake cryptocurrency and company as part of a government investigation that led to 18 companies and individuals being charged with fraud. In the allegations unveiled Wednesday in Boston, three cryptocurrency trading firms and their employees were involved in the Whipsaw transaction and conspired to manipulate the price of NexFundAI; NexFundAI is an encryptionToken created by the FBI while investigating market manipulation in the cryptocurrency industry. A fourth company and its employees were also charged for implementing a similar scheme. Jodi Cohen, a special agent and head of the FBI's Boston division, said that the entrapment operation, called "Operation Token Mirroring", targeted malicious token developers, promoters and market makers in the cryptocurrency space.