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In a significant legal development, Liu Zhou, founder of cryptocurrency firmMyTrade, pleaded guilty to market manipulation and wire fraud in a Boston federal court. Zhou admitted to conspiring to manipulate digital token markets, including a token created as part of an FBI operation designed to expose fraud in the cryptocurrency sector.Three weeks before, <a href="https://www.unlock-bc.com/130659/fbi-launches-nexfundai-token-to-combat-crypto-fraud-in-major-market-manipulation-case/" rel="noopener noreferrer nofollow">NexFundAI has led&nbsp;US prosecutors&nbsp;in&nbsp;Boston&nbsp;to file charges against&nbsp;18 individuals and entities</a>, including four prominent crypto firms—Gotbit, ZM Quant, CLS Global, and MyTrade—in a case focused on market manipulation.This investigation, named “Operation Token Mirrors,” marks the FBI’s first-ever creation of its own digital token and fake cryptocurrency firm to lure fraudsters in a controlled sting.The probe revealed that MyTrade was one of three so-called “market makers” offering illicit trading services to various cryptocurrency companies. MyTrade allegedly collaborated with NexFundAI—a token created and backed by the FBI—on the Ethereum blockchain, assisting in its market manipulation.As part of his plea agreement, Zhou accepted a prison sentence of up to 1.5 years without appeal. Prosecutors required MyTrade to discontinue its “volume support” services, which included trading bots that created artificial trading volumes for roughly 60 cryptocurrencies.Despite the charges, Zhou’s attorney, Jason Benzaken, stated that Zhou has “always endeavored to offer lawful services in compliance with governing regulations.” Founded in 2021 and registered in the British Virgin Islands, MyTrade provided trading-related services, including “volume support,” which prosecutors cited as a form of “wash trading“—an illegal practice of inflating an asset’s trading volume or price artificially.Zhou and MyTrade representatives discussed strategies such as “pump and dumps” in virtual and in-person meetings with NexFundAI promoters. Following these meetings, Zhou was approached by the FBI on September 23, ultimately leading to his swift guilty plea within a week. Four others implicated in the investigation have also entered guilty pleas.The post <a href="https://www.unlock-bc.com/131780/mytrade-founder-pleads-guilty-to-market-manipulation-in-fbi-sting-operation/" rel="noopener noreferrer nofollow">MyTrade Founder Pleads Guilty to Market Manipulation in FBI Sting Operation</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.

MyTrade Founder Pleads Guilty to Market Manipulation in FBI Sting Operation

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