The U.S. Department of Justice announced charges on Monday against 10 individuals connected to four cryptocurrency firms accused of running pump-and-dump schemes to manipulate digital asset markets. The firms named in the case are Gotbit, Vortex, Antier, and Contrarian, all described by prosecutors as so-called market makers. Authorities say they have seized more than $1 million in cryptocurrency as part of the investigation.
Federal prosecutors allege the defendants worked together to artificially inflate both trading volumes and the prices of various cryptocurrencies before offloading their holdings onto unsuspecting retail investors at those elevated prices. “These so-called pump-and-dump schemes caused losses to investors in the United States and elsewhere,” prosecutors stated. The charges cover 10 foreign nationals who served as executives or employees at the four firms.
Three of the defendants, including two senior executives, were extradited from Singapore and appeared before U.S. District Court Judge Araceli Martínez-Olguín in Oakland. Two additional defendants have already entered guilty pleas and received sentences. The case underscores the willingness of U.S. authorities to pursue overseas actors whose alleged conduct is seen as affecting American cryptocurrency markets, even when those individuals operate entirely outside the United States.
The investigation grew out of an FBI undercover operation that used a bureau-created token to expose alleged market manipulation services. This same technique was previously employed to support charges brought against 18 individuals and entities accused of similar market manipulation offenses in October 2024. The operation reflects a broader law enforcement strategy of using purpose-built digital assets to gather evidence against suspected manipulators.
The current charges follow earlier action against Gotbit’s founder, Aleksei Andriunin, who reached a plea agreement with U.S. authorities in March of last year over market manipulation charges. As part of that agreement, Andriunin forfeited $23 million in crypto assets. His case was among the earlier steps in what appears to be a sustained effort by the DOJ to hold cryptocurrency market participants accountable for alleged fraud.
The DOJ has also pursued other enforcement actions in the digital asset space in recent months, including cases targeting developers of privacy tools and individuals accused of misusing COVID-19 relief funds to acquire cryptocurrencies. Together, these actions signal an expanding scope of federal scrutiny across multiple areas of the crypto industry. Prosecutors have not indicated whether additional charges related to the current investigation are forthcoming.
Originally reported by Decrypt.
