Key facts
- MyTrade founder Liu Zhou was fined $10,000 and sentenced to no prison time.
- Zhou pleaded guilty to conspiracy to commit market manipulation and wire fraud.
- MyTrade's 'Volume Support' service used bots to create millions in fake daily trading volume across about 60 cryptocurrencies.
- The FBI used a fictitious crypto company and token to ensnare individuals involved in wash trading.
- The operation resulted in charges against 18 individuals and entities.
MyTrade founder Liu Zhou has been fined $10,000 and avoided prison time for orchestrating a wash trading scheme that generated millions of dollars in fake daily volume across approximately 60 cryptocurrencies. Zhou, 41, pleaded guilty in October 2024 to conspiracy to commit market manipulation and wire fraud.
MyTrade openly sold a service called "Volume Support," which allowed clients to use bots to execute repeated buy and sell orders for the same asset, thereby inflating apparent trading volume on various exchanges. Zhou admitted that the purpose of the service was to attract other buyers, causing them to lose money while MyTrade profited.
The FBI conducted an undercover operation, creating a fictitious crypto company named NexFundAI with a website and token to solicit market-making services. This sting operation led to charges against 18 individuals and entities, including market makers such as Gotbit, ZM Quant, and CLS Global.
As part of his plea agreement, Zhou must ensure MyTrade MM ceases selling the Volume Support service and permanently deactivates the associated bots. The firm is also required to post a notice on its website stating that volume support constitutes wash trading and is illegal in the United States.