CLS Global: market maker deal terms and record
CLS Global was caught wash-trading a token the FBI created for a sting. It pleaded guilty in January 2025 and was sentenced in April 2025 to pay $428,059 and to 3 years of probation barred from US crypto markets.
ConvictedPublic deals on record: 1.
Profile
| Deal models | paid volume generation |
| Legal record | Convicted. Pleaded guilty Jan 2025 to conspiracy to commit market manipulation and wire fraud; sentenced 2 Apr 2025 to pay $428,059 (fine and forfeiture) and 3 years of probation barred from US crypto markets. SEC civil charges of 9 Oct 2024 resolved in parallel. |
Source: www.justice.gov, grade 5, primary document, checked 2026-10-19.
Public deals
Token created at the direction of the FBI, 2024
| Structure | wash trading (criminal charges) |
| Details | Caught wash-trading a token the FBI itself created as part of a sting. ~$25M seized in the operation. |
| Outcome | Convicted. Pleaded guilty Jan 2025 to conspiracy to commit market manipulation and wire fraud; sentenced 2 Apr 2025 to pay $428,059 (fine and forfeiture) and 3 years of probation barred from US crypto markets. SEC civil charges of 9 Oct 2024 resolved in parallel. |
| Source | US Department of Justice, grade 5, primary document, checked 2026-10-19 |
How market-maker deals usually look
The industry default is a token loan plus a call option. Across about 40 public DAO deals, loans ran at 1% to 5% of circulating supply for 12 to 24 months, with the strike set 25% to 100% above the TGE price, median 50% (WuBlockchain and the Wallfacer deal tracker, grade 4). A second source puts loans at 0.5% to 2% of supply; we show both, because the market has no agreed norm.
Want to see what an option is worth to the desk? Try the option calculator, or read our sample term sheet review. How rarely launches disclose these deals at all: 4 of 57.
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Allegations are reported as allegations, with the outcome where one exists. A written comparison against public data, not legal or investment advice. We take no money from market makers.