The U.S. Department of Justice (DOJ) recently announced that the founder and primary operator of MyTrade, "a financial services firm known in the cryptocurrency industry as a 'market maker,'" has pleaded guilty "for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies." According to a press release, MyTrade allegedly provided "wash trading" services by, among other things, providing its clients with access to a dashboard available through its website that allowed clients to specify the desired amount of daily wash trades (described as "Volume Support") on identified cryptocurrency exchanges. The press release further notes that MyTrade "used computer programs known as 'bots' to generate ... fraudulent wash trades for clients" and used such "wash trading bots ... for millions of dollars' worth of daily wash trades for approximately 60 different cryptocurrencies."
In another press release, DOJ announced money laundering charges against an individual related to the defendant's alleged "years-long operation of AurumXchange, an unlicensed virtual currency exchange." According to the press release, "AurumXchange was used to conduct over 100,000 transactions, resulting in the transfer of over $30 million in funds," and a portion of the funds flowing through AurumXchange allegedly came from accounts held on the dark web marketplace Silk Road. If convicted, the defendant faces up to 10 years in federal prison and a fine of up to $250,000.
For more information, please refer to the following links:
- Operator of Unlicensed Virtual Currency Exchange AurumXchange Charged with Federal Money Laundering and Tax Crimes
- Founder of Cryptocurrency Financial Services Firm "MyTrade" Pleads Guilty to Market Manipulation and Fraud Conspiracy
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