On April 17, COINOTAG News reported that the U.S. Securities and Exchange Commission (SEC) has taken decisive action against CLS Global, a company based in the UAE, for alleged manipulation of the NexFundAI cryptocurrency market. Official statements indicate that CLS Global engaged in deceptive practices that involved creating fictitious trading activities aimed at misleading investors. In response to these violations, a Massachusetts court has ruled, imposing a series of penalties on the firm.
As part of the legal resolution, CLS Global is required to pay a civil fine of $425,000 and refund $3,000 in illicit earnings. Furthermore, the firm must halt all operations involving U.S. users or businesses and is mandated to provide annual compliance reports for the next three years. This case underscores the regulatory diligence that the SEC continues to exercise in the fast-evolving cryptocurrency sector, reinforcing investor protections.