According to a statement from the U.S. Securities and Exchange Commission (SEC), the SEC has filed lawsuits against three entities: ZM Quant Investment, Gotbit Consulting (Gotbit Hedge Fund), and CLS Global FZC. The SEC accuses them of posing as market makers and manipulating various cryptocurrency markets through wash trading and other methods, misleading retail investors. The SEC alleges that these entities and nine individuals used algorithms to execute wash trades, creating false trading volume and liquidity to induce investors to buy assets based on false signals. The case has been filed in the U.S. District Court for the Southern District of Massachusetts, where the SEC is seeking a permanent injunction, restitution for unjust enrichment, civil penalties, and a ban on their executive appointments. The investigation also involves an FBI-led fraudulent token enforcement action to uncover related manipulation methods. The SEC stated that it will continue to strengthen its regulatory enforcement against fraud and manipulation in the cryptocurrency market. (financefeeds)