SEC: Crypto Asset Market Maker CLS Global FZC Admits to Violating Securities Laws

The U.S. Securities and Exchange Commission (SEC) announced that the U.S. District Court for the District of Massachusetts has issued a final judgment against UAE entity CLS Global FZC LLC, which claims to be a crypto asset market maker, for violating securities laws. Furthermore, the SEC accused CLS Global of participating in a scheme to manipulate the “NexFundAI” market by offering and selling a crypto asset as a security to retail investors, intending to entice victimized investors into purchasing NexFundAI by creating the illusion of an active trading market. CLS Global agreed to the final judgment, under which it is required to pay a civil penalty of $425,000, disgorgement of $3,000, and prejudgment interest of $80.39.