The U.S. Department of Justice has unsealed charges against 10 people accused of running coordinated “pump-and-dump” and wash trading schemes that manipulated cryptocurrency prices and volumes, federal prosecutors announced Tuesday.
What happened
- The indictments allege the defendants—linked to four market‑making firms (Gotbit, Vortex, Antier, and Contrarian)—conspired to create fake trading volume and inflate token prices, then sold into the artificial demand, leaving ordinary investors with losses.
- Prosecutors say the operation included wash trades, matched orders and other prearranged transactions designed to simulate genuine market activity and prop up token prices.
Timeline and enforcement actions
- The alleged activity dates back to 2018. The matter has expanded in phases: initial charges surfaced in October 2024; a Gotbit-related indictment followed in March 2025; Vortex-related charges were unsealed in August 2025; and additional counts tied to Contrarian and Antier came in September 2025.
- Three defendants—Vortex CEO Gleb Gora, Contrarian CEO Manu Singh, and Contrarian employee Vasu Sharma—were arrested in Singapore, extradited to the United States, and appeared in federal court on Monday.
Financial fallout and prior pleas
- Authorities say the schemes caused investor losses in the U.S. and abroad and have seized more than $1 million in cryptocurrency to date.
- Gotbit founder Aleksei Andriunin previously pleaded guilty in 2025 and agreed to forfeit roughly $23 million in crypto as part of a plea deal.
Broader context
- The DOJ’s action follows related enforcement efforts, including a separate FBI undercover operation that exposed alleged market‑manipulation services involving CLS Global using a bureau-created token.
- Prosecutors emphasize these cases show continued government focus on market integrity in digital assets and signal increased scrutiny of market makers and coordinated trading activity.
Why it matters
- The indictments underscore the legal risks of coordinated trading tactics and state efforts to deter fraudulent market behavior in crypto markets. For exchanges, market makers and traders, the cases are a reminder that authorities are actively pursuing manipulation across borders and using seizures and extraditions to enforce U.S. laws.
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