Manpreet Kohli, CEO of cryptocurrency firm Saitama, lost his extradition fight in the UK. He faces US charges of wire fraud and market manipulation related to a token that once had a $7.5 billion market value.
The case highlights the increasing scrutiny and legal challenges faced by cryptocurrency executives globally, as authorities pursue fraud and market manipulation charges within the digital asset space.
Manpreet Kohli, the 45-year-old Indian national leading the cryptocurrency firm Saitama, has lost his legal battle in the UK against extradition to the United States to face charges of wire fraud and market manipulation. Kohli was arrested in London in 2024 after US prosecutors accused him and over a dozen others of orchestrating a widespread fraud scheme involving Saitama tokens, which at one point boasted a market capitalization of $7.5 billion.
Prosecutors allege that Kohli and his associates profited by millions of dollars through private sales of Saitama tokens, while publicly claiming to hold and purchase them. Kohli himself is said to have personally gained around $20 million from these alleged activities.
Kohli had contested his extradition, raising concerns about the adequacy of measures to prevent suicide in US custody. However, on August 19, Judge Samuel Goozee dismissed these arguments, stating that appropriate arrangements were in place for Kohli's mental health and suicide risk during transit and within the US prison system. The judge has forwarded the case to British ministers for a decision on ordering the extradition, a step typically considered a formality.
Kohli remains free on £200,000 bail and retains the option to appeal the ruling. Earlier in August, a federal judge in Boston had also rejected his attempt to have the indictment dismissed, rejecting his argument that the Saitama token did not qualify as a security under US law.