Saitama CEO Manpreet Kohli loses UK bid to block extradition to U.S. in $7.5B token case A UK judge has rejected Saitama CEO Manpreet Kohli’s challenge to extradition to the United States, where he faces wire fraud and market-manipulation charges tied to an Ethereum-based token that once reached about $7.5 billion in market value. Judge Samuel Goozee sent the matter to British ministers, who will decide whether to issue the extradition order. Kohli, a 45-year-old Indian national, remains free on £200,000 ($272,420) bail and can appeal the ruling. What prosecutors say - U.S. prosecutors allege Kohli and others publicly claimed they were buying and holding Saitama tokens while privately selling millions of dollars’ worth of their holdings. They say Kohli personally made roughly $20 million from the scheme. - The criminal case was brought as part of a larger probe that charged more than a dozen people and firms for manipulating cryptocurrency markets. Extradition hearing highlights - Kohli argued the U.S. custody system would not adequately protect his mental health and that he could be at risk of suicide. Judge Goozee rejected that claim after reviewing transit and U.S. prison arrangements, saying steps exist to reduce suicide risk “to an acceptable level.” - With the court’s decision, the case now moves to UK ministers for a ministerial decision—typically a formality after a court permits extradition—though Kohli retains the right to appeal. Operation Token Mirrors and the FBI’s undercover work - The charges against Kohli arose amid a broader U.S. enforcement campaign known as Operation Token Mirrors. As part of that probe, the FBI created a real Ethereum-based token called NexFundAI and ran an undercover sting to document wash trading and pump-and-dump schemes. - Undercover agents posed as the NexFundAI team and approached market makers suspected of artificially inflating trading activity. The operation led to charges against 18 individuals and entities and moved to seize about $25 million in cryptocurrency. Market makers and enforcement outcomes - Gotbit, one of the market-marking firms implicated, admitted to providing wash-trading services for multiple client tokens (including Saitama and Robo Inu). Gotbit’s founder and CEO Aleksei Andriunin pleaded guilty, was extradited to the U.S., forfeited roughly $23 million in stablecoins, and received an eight-month prison sentence plus probation and supervised release. Gotbit Consulting was ordered to cease operations and given five years’ probation. - CLS Global also pleaded guilty to creating artificial volume for the FBI’s NexFundAI token; a Boston federal court in April 2025 ordered the UAE-registered firm to pay $428,000 and imposed three years’ probation. - Other figures tied to Saitama—Russell Armand and Maxwell Hernandez—later pleaded guilty in the government’s investigation. Parallel civil action and federal litigation - The SEC has filed a civil enforcement action against Kohli and other promoters, alleging coordinated statements and manipulation to boost Saitama Inu and SaitaRealty. - Kohli also asked a U.S. federal judge in Boston to dismiss the criminal indictment by arguing Saitama was not a security subject to U.S. securities law; that motion was denied, and the indictment remains in place. What’s next - The ministerial stage will determine whether the UK signs an extradition order; Kohli may appeal the court decision while staying on bail in the UK. The charges against him in the U.S.—wire fraud and market manipulation—remain allegations until proven in court. This case underscores continued U.S. scrutiny of alleged market manipulation in crypto markets and the use of unconventional undercover tactics to gather evidence against market makers and token promoters.
Saitama CEO Faces US Extradition After UK Court Rejects Appeal in $7.5B Token Case
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Summary
A UK judge denied Saitama CEO Manpreet Kohli’s appeal to block extradition to the U.S., where he faces wire fraud and market manipulation charges tied to a $7.5 billion Ethereum-based token. Kohli remains free on £200,000 bail and can still appeal. U.S. prosecutors accuse him of inflating the token’s value while selling his stake for $20 million. The case is part of Operation Token Mirrors, which charged 18 individuals and entities. Gotbit, linked to Saitama, admitted to wash-trading and was shut down. The SEC also filed a civil action against Kohli, and a U.S. judge rejected his motion to dismiss. Traders are closely watching altcoins to watch amid shifting sentiment, with the fear and greed index signaling caution.
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