According to ME News, on April 1 (UTC+8), the U.S. Attorney’s Office for the Northern District of California announced that a federal grand jury has brought criminal charges against 10 executives and employees associated with the crypto market makers Gotbit, Vortex, Antier, and Contrarian, accusing them of manipulating cryptocurrency asset prices and trading volumes through “wash trading” (fictitious trades) to induce investors to buy at artificially inflated prices. Law enforcement information reveals that the case was uncovered through a secret joint operation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service’s Criminal Investigation Division targeting manipulation in the crypto industry, resulting in the seizure of over $1 million in crypto assets. Two CEOs and one executive from three of the companies have been extradited from Singapore to the United States and made their initial court appearance at the federal courthouse in Oakland, California. Additionally, two defendants have previously pleaded guilty and been sentenced. According to the charges, those involved could face up to 20 years in prison and fines of up to $250,000. (Source: ODAILY)
The U.S. Department of Justice Sues Four Crypto Market Makers for Wash Trading; Ten Face Up to 20 Years in Prison
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Summary
The U.S. Department of Justice indicted 10 individuals from crypto market makers Gotbit, Vortex, Antier, and Contrarian for wash trading. The scheme manipulated trading volume and cryptocurrency market prices, resulting in the seizure of over $1 million in assets. Two CEOs and one executive were extradited from Singapore to Oakland, where two have already pleaded guilty. Each defendant faces up to 20 years in prison and a $250,000 fine. The case arose from a joint investigation by the FBI and IRS.
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