FBI’s ‘Operation Token Mirrors’ Crosses Ethical Lines in Cryptocurrency Sting

The FBI recently took the unprecedented step of creating a fake cryptocurrency token, NexFund AI ($NEXF), to ensnare fraudsters in the digital currency space. The operation, labeled “Operation Token Mirrors,” led to the indictment of 18 individuals and entities accused of market manipulation and wash trading. While the FBI’s goals may have been noble—uncovering cryptocurrency fraudsters—this operation raises serious ethical questions about government overreach, and the rights of investors who, in good faith, may have fallen victim to the scam.