Announcing YC Crypto deals
We're now providing crypto deals to support fintech builders funded by YC: support on tools like wallets, onramps, audits, blockchains, onchain data.
🚨THE FBI CREATED A FAKE CRYPTOCURRENCY.. LISTED IT ON UNISWAP.. HIRED MARKET MAKERS TO PUMP IT.. THEN ARRESTED EVERYONE WHO SAID YES..
THIS IS THE CRAZIEST LAW ENFORCEMENT OPERATION IN CRYPTO HISTORY!!!
The FBI built an actual ERC-20 token on Ethereum called NexFundAI.. 100 billion token supply.. A professional website.. Whitepapers promising "passive income through AI-powered investing"..
It looked exactly like every other crypto project.. Because that was the point..
Undercover agents posed as the founding team.. Then reached out to professional market-making firms and said "we need you to fake our trading volume"..
Every single firm said yes..
Here's what they recorded..
Gotbit.. A firm run by a 26-year-old Russian who publicly bragged in 2019 that he built a business faking trade volumes.. His team kept internal spreadsheets with columns literally labeled "fake volume" vs "market volume"..
When asked how fast they could pump NexFundAI's volume to $1 million per day.. They said "6 hours.. It will cost about $200"..
$200 to fake $1 million in daily trading volume..
MyTrade.. Run by a guy who called himself "the mastermind".. He explained the exact psychology of the scam on camera..
"We make the chart look like a really nice roller coaster ride.. That's where people jump in.. We have to make them lose money in order to make profit"..
He said that on a recorded FBI video call..
CLS Global.. A Dubai-based firm.. Their bots generated 98% of NexFundAI's total trading volume.. When the FBI asked if they could sync fake volume spikes with fake news announcements.. They said absolutely..
ZM Quant.. Bots executing 10 to 20 trades per minute through dozens of wallets to look organic..
All of them knew it was fraud.. All of them did it anyway.. All of it was recorded..
And the clients were even worse..
Saitama.. A meme coin that hit $7.5 billion market cap.. The founders coordinated buys through private Telegram chats.. Sent "pump it" memes while manipulating the price.. Then dumped on retail investors..
$7.5 billion.. Built entirely on fake volume.. Every penny of real money came from retail investors who thought the momentum was organic..
One founder left Saitama and started Robo Inu.. Used Gotbit again.. Another launched VZZN.. Same playbook..
Lillian Finance.. Founder claimed to be a defense contractor who addressed Congress.. Marketed the token as funding children's hospitals.. Pocketed everything..
When the FBI shut it down.. They seized $25 million in one day.. 18 people indicted across the US, UK, and Portugal.. The CEO of Gotbit was arrested in Portugal and extradited.. Sentenced to 8 months plus $23 million forfeiture..
But here's the part that broke my brain..
Real people bought NexFundAI..
The FBI's fake token.. With zero utility.. Zero real developers.. Created solely to catch criminals.. Attracted real retail investors because the fake volume made the chart look bullish..
When the FBI pulled the liquidity to end the operation.. Those people lost real money.. On a government-issued token..
The FBI had to set up a restitution portal to pay them back..
And it gets worse..
Within 24 hours of the DOJ announcing the sting.. Someone cloned the FBI's exact smart contract.. Launched a copycat token.. Rode the viral momentum.. And made $127,000 in a single day..
Using the exact same manipulation tactics the FBI just arrested 18 people for..
Then in 2026.. The FBI did it again.. New token called Lexobit.. 10 more arrests.. Including operators extradited from Singapore..
IRS forensics showed that in one firm's trading.. 1,209 out of 1,221 consecutive transactions went straight back to wallets the firm controlled.. 99% circular..
The FBI proved what everyone in crypto suspected..
The volume is fake.. The charts are painted.. The momentum is manufactured..
And every time you buy a token because "the chart looks bullish".. You might be the exit liquidity.
The CEO of Take-Two, the company behind GTA, just said something the entire AI industry doesn't want to hear.
And he said it without being anti-AI.
Strauss Zelnick's argument is precise. AI is built on datasets. Datasets are backward-looking. Creativity is forward-looking. A model trained on everything that already exists cannot, by definition, produce something genuinely unexpected. And all hits, by their very nature, are unexpected.
Asset creation and hit creation are not the same thing. AI is getting very good at the first one. The second one is what actually makes money, builds franchises, and changes culture. Nobody has shown AI can do that yet.
The derivative property problem is real. You can clone GTA with existing technology. You could do it before AI. It would take 3 years and look identical. It still wouldn't sell. Because it isn't GTA. It's a clone of GTA.
And consumers, despite what the industry occasionally pretends, can feel the difference between something genuinely new and something assembled from the residue of things that already worked.
Thousands of mobile games ship every year. 0 to 5 hits get made. The same studios make them every time. The technology to make more games has been commoditized for years. It didn't democratize hit creation. It just flooded the market with more forgettable product.
The Silicon Valley thesis that AI unlocks game creation for everyone is true in the same way that cheap cameras unlocked filmmaking for everyone. They did. And the same 5 studios still make the movies everyone watches.
What Zelnick is saying, without quite saying it, is that the thing AI cannot replicate is taste. The instinct for what hasn't been done yet. The cultural antenna that detects the gap in the market before the data can see it.
Data tells you what people wanted. Hits tell people what they want next.
Those are different jobs.