US Justice Department busts crypto price-manipulation ring…10 market-maker employees indicted

The US Department of Justice has indicted 10 employees of market-making firms accused of manipulating cryptoasset (cryptocurrency) prices.

According to the DOJ on the 31st (local time), federal prosecutors in Northern California indicted 10 individuals affiliated with four firms on charges of artificially inflating crypto trading volumes and prices.

Those charged include employees of crypto market-making firms such as Gotbit, Vortex, Antier and Contrarian. They are accused of using so-called “pump-and-dump” schemes—driving prices higher and then selling at elevated levels to reap illicit gains.

Investigators said the suspects manipulated volumes using “wash trading,” a tactic in which the same person or a colluding group repeatedly places simultaneous buy and sell orders to create the appearance of more active trading than actually exists.

The Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation (IRS-CI) uncovered the alleged crime through undercover operations. During the probe, the FBI created its own crypto token to verify how the scheme was structured.

In connection with the case, some defendants have already pleaded guilty, and more than $1 million in cryptoassets were seized.

Three suspects arrested in Singapore were extradited to the United States and appeared in court. The remaining suspects have also been indicted on conspiracy and fraud charges.