U.S. Department of Justice Sues Four Crypto Market Makers Involved in "Wash Trading" to Manipulate Markets; 10 Individuals Face Up to 20 Years in Prison

Odaily News: The U.S. Department of Justice's Northern District of California office announced that a federal grand jury has brought criminal charges against 10 executives and employees associated with crypto market makers Gotbit, Vortex, Antier, and Contrarian. They are accused of manipulating cryptocurrency asset prices and trading volumes through "wash trading" (fake trading), thereby inducing investors to buy at artificially inflated price levels.

Law enforcement information reveals that the above cases were uncovered through a covert operation jointly conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation division targeting manipulation in the crypto industry. Over $1 million in crypto assets have been seized so far. Two CEOs and one executive from three of the companies have been extradited from Singapore to the United States and made their initial appearances in federal court in Oakland, California.

Furthermore, two defendants have previously pleaded guilty and been sentenced. According to the charges, the relevant individuals involved could face up to 20 years in prison and a $250,000 fine.