A major crackdown on crypto market manipulation has led U.S. authorities to charge ten foreign nationals linked to multiple market-making firms. The U.S. Department of Justice said the group used wash trading and pump-and-dump schemes to inflate crypto prices before selling to investors at higher levels.
The operation also resulted in arrests, guilty pleas, and the seizure of more than $1 million in digital assets.
On 30th March, federal grand juries indicted executives and employees from four major firms, including Gotbit, Vortex, Antier, and Contrarian, charging them with fraud and conspiracy.
Authorities allege defendants created fake market activity, selling tokens at inflated prices, causing losses for investors globally.
“The defendants acted as illicit market makers by wash trading the cryptocurrency to artificially inflate trading volume.”
Three defendants, including two CEOs, were arrested in Singapore and later extradited to the United States. Two others have already pleaded guilty, while several others remain under indictment.
If convicted, each defendant faces up to 20 years in prison and fines of up to $250,000 per charge.
The charges were filed across multiple indictments in 2025. On March 25, 2025, three Gotbit-linked individuals were indicted for wire fraud conspiracy tied to token price manipulation.
Later, on August 28, 2025, Vortex executives, including CEO Gleb Gora, 24, and CFO Sergei Ryzhkov, were charged with a similar scheme.
On September 4, 2025, four individuals tied to Contrarian and Antier were indicted for planning token price pumps. Several of these defendants were arrested in Singapore on October 2, 2025, and later appeared in federal court in Oakland.
The investigation followed an undercover operation led by the FBI and IRS Criminal Investigation. As part of the probe, officials created multiple test tokens to identify manipulation tactics.
Authorities say the accused repeatedly inflated trading volume, attracted buyers, then sold holdings at elevated prices.
This is not the first enforcement action targeting crypto market manipulation. Regulators have increasingly targeted market makers and liquidity providers accused of creating artificial demand.
Crypto manipulation uses tactics like wash trading and pump-and-dump to fake demand, raise prices, and sell at peaks, leaving regular investors with losses.
The FBI ran an undercover sting, creating test tokens to track manipulation. Suspects boosted fake volume, attracted buyers, then sold at higher prices.
If convicted, defendants could face up to 20 years in prison and fines up to $250,000 per charge, along with asset seizures and lasting legal consequences.
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