Federal agents built a fake crypto startup to test a theory—and it worked. They caught UAE-based CLS Global offering to wash trade an AI token to fake demand. The DOJ says CLS used custom algorithms to make trades between its own wallets and simulate real market action. The sting involved a full fake project—NexFundAI—launched by the feds on Uniswap. CLS bit, agreeing to promote the token with deceptive tactics. Now CLS Global has pleaded guilty to market manipulation and wire fraud. It’s banned from U.S. crypto markets for 3 years and fined 428K. Is this just the beginning of AI-token crackdowns?