Liu Zhou, founder of crypto market-making firm MyTrade, was sentenced by the US District Court in Boston for conspiracy to commit market manipulation and wire fraud. He received a $10,000 fine and a court order to shut down his wash trading bots, with no prison time. His company, registered in the British Virgin Islands and launched in 2021, executed simultaneous buy and sell orders on approximately 60 digital assets to create an illusion of genuine market activity, often for tokens involved in pump-and-dump schemes. Zhou, who operated between China and Canada, is the first market maker to plead guilty as part of the FBI’s Operation Token Mirrors, which involved federal agents creating their own token, NexFundAI, on Ethereum to bait manipulators.
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