MyTrade Founder Fined $10,000 Over Crypto Wash Trading

The founder of cryptocurrency financial services firm MyTrade was fined $10,000 after being sentenced in Boston federal court for a crypto market-manipulation conspiracy tied to wash trading, U.S. prosecutors said. Liu Zhou, the founder and primary operator of MyTrade, was sentenced on August 6, 2026 to pay the $10,000 penalty, according to the U.S. Attorney's Office for the District of Massachusetts. Zhou had pleaded guilty in October 2024 to conspiracy to commit market manipulation and wire fraud. For related coverage, see Putin Signs Law Opening Regulated Crypto Trading to Retail Investors in Russia. Penalty $10,000 DOJ said Boston federal court ordered the fine when sentencing MyTrade founder Liu Zhou for the crypto market-manipulation conspiracy. Key Takeaways MyTrade founder Liu Zhou was fined $10,000 after pleading guilty to a crypto market-manipulation conspiracy. DOJ said MyTrade MM sold wash-trading services through a client dashboard labeled "Volume Support," executed by bots. The case stemmed from an undercover operation using NexFundAI, an Ethereum-based token that traded on Uniswap. Prosecutors said MyTrade MM let clients set daily wash-trade targets through a dashboard that described the service as "Volume Support," with the firm using bots to execute the trades. Wash trading involves buying and selling the same asset to create the appearance of activity that does not reflect genuine demand. For related coverage, see Coinbase to Suspend Six Crypto Trading Pairs on August 6 After Market Review. The scheme was uncovered through an undercover operation that created NexFundAI, an Ethereum-based token that traded on Uniswap before law enforcement disabled it. The enforcement effort mirrors other recent DOJ crypto cases, including the agency's move to charge the founder of Few and Far in a separate matter. Why regulators treat crypto wash trading as market manipulation Wash trading inflates reported volume by routing trades between accounts controlled by the same party, creating a misleading signal of liquidity and demand. Traders who read that volume as real interest can be drawn into thinly traded tokens. For related coverage, see Coinbase Launches 24/5 Trading for Nearly 4,000 U.S. Stocks in the UK. False volume erodes the price-discovery function that markets rely on, which is why prosecutors frame the practice as manipulation rather than a technical infraction. Founders and platforms that enable it face direct criminal exposure, as the MyTrade case shows. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception, said Joshua S. Levy of the U.S. Attorney's Office, in the broader crackdown announcement. What the MyTrade fine could mean for crypto platforms and traders The sentencing closes one thread of an October 2024 operation that DOJ described as its first criminal action against crypto market makers for wash trading.