A British judge rejected former Saitama CEO Manpreet Kohli's bid to block extradition to the US, where he faces wire fraud and market manipulation charges. The case now goes to UK ministers for a final decision. Kohli allegedly made about $20 million from secretly selling Saitama tokens while publicly claiming to hold them.
A British judge rejected former Saitama CEO Manpreet Kohli's bid to block extradition to the US, where he faces charges tied to an alleged $20 million crypto market-manipulation scheme.
Judge Samuel Goozee rejected Kohli's challenge on Aug. 19 and referred the case to the UK government for a decision on the US extradition request, according to Reuters. Kohli can appeal the ruling, and he remains free on £200,000 (about $272,400) bail.
US prosecutors have charged Kohli with wire fraud, market manipulation, related conspiracy offenses, and operating an unlicensed money-transmitting business. The charges concern Saitama, an Ethereum-based token that once reached a reported market capitalization of $7.5 billion. Prosecutors allege Kohli coordinated token purchases across multiple wallets and paid market makers ZM Quant and Gotbit to wash trade on several exchanges while publicly denying he was selling his holdings.
The extradition ruling follows a separate decision in Boston earlier this month, where a federal judge rejected Kohli's attempt to dismiss the indictment after he argued that the Saitama token could not legally be classified as a security under US law. Kohli's case stems from "Operation Token Mirrors," a Justice Department investigation announced in October 2024 that charged 18 individuals with fraud and wash trading.
Kohli challenged extradition in part by arguing that US authorities could not adequately address his mental health and risk of suicide in custody. Judge Goozee found that safeguards during his transfer and within the US prison system could reduce that risk to an acceptable level.
The case is part of a broader enforcement push targeting crypto market manipulation. Gotbit, one of the market makers implicated in the scheme, admitted to manipulating token prices and volumes for clients including Saitama. In June 2025, the company was ordered to forfeit $23 million, while founder Aleksei Andriunin was sentenced to eight months in prison.
The DOJ alleges Kohli made approximately $20 million from the scheme. The investigation, which began with Kohli's arrest in London on Oct. 7, 2024, has become a reference point for regulators examining wash trading and coordinated token manipulation across the crypto sector.
The extradition decision now rests with UK ministers, who will determine whether to order Kohli's transfer. If extradited, Kohli would face trial in the US District Court for the District of Massachusetts. His attorneys did not immediately respond to requests for comment.
The case highlights the regulatory risk facing community-driven token projects. Saitama, which at its peak was among the largest Ethereum-based tokens by market capitalization, collapsed after the charges were announced. The enforcement action against Kohli and the broader Operation Token Mirrors investigation shows that US authorities are treating coordinated token manipulation as a serious criminal offense, with potential implications for similar projects that rely on wash trading or artificial volume to attract investors.
This article is for informational purposes only and does not constitute investment advice.
