MyTrade Founder Fined $10K for Wash Trading 60 Cryptos
MyTrade founder Liu Zhou sentenced to a $10,000 fine for running a wash trading service that used bots to generate millions in fake daily volume across about 60 cryptocurrencies. Zhou pled guilty alongside 17 co-conspirators in the FBI sting operation.
Quick Take
MyTrade's Liu Zhou fined $10,000 for wash trading service
Bots generated millions in fake volume across 60 cryptocurrencies
Client dashboard ordered daily fake trades to inflate market volume
FBI's sting operation used fake token NexFundAI to catch manipulators
Market Impact Analysis
NeutralWhile the fine is minor, the enforcement highlights regulatory scrutiny on manipulative practices, which could improve market integrity but has limited immediate price impact.
Speculation Analysis
Key Takeaways
- MyTrade founder Liu Zhou fined $10,000 for selling a wash trading service that inflated volumes across 60 cryptocurrencies.
- Bots executed self-trades, generating millions in fake daily volume to lure unsuspecting buyers into pump-and-dump schemes.
- FBI sting operation created fake token NexFundAI to catch market manipulators; Zhou was one of 18 charged.
- Zhou avoids prison but must post a disclaimer that volume support is illegal under U.S. law.
What Happened
Liu Zhou, founder of market maker MyTrade, was sentenced to a $10,000 fine for operating a wash trading service that inflated trading volumes across roughly 60 cryptocurrencies. Zhou pleaded guilty in October 2024 to conspiracy to commit market manipulation and wire fraud, alongside 17 others caught in an FBI sting. MyTrade openly sold “Volume Support,” allowing clients to order fake trades executed by bots, generating millions in fake daily volume to attract real buyers.
The Numbers
Zhou’s fine is just $10,000 despite the scale of manipulation. The service operated on about 60 cryptocurrencies, with bots executing self-trades that created millions in apparent daily volume. The FBI’s operation, involving a fictitious token NexFundAI, led to charges against 18 individuals and entities in total.
Why It Happened
Wash trading is a persistent problem in crypto, where unregulated exchanges often tout inflated volumes. MyTrade’s service emerged to meet demand from projects seeking to appear more active and attract investors. The FBI’s sting suggests regulators are increasingly using aggressive tactics to police manipulation. Zhou’s candor to undercover agents—admitting the bot could run pump-and-dumps—highlighted the scheme’s intent to deceive.
Broader Impact
The case sets a precedent: wash trading services marketed openly will face consequences. While the fine is minor, the required disclaimer on MyTrade’s site sends a warning. It may deter similar volume-inflation schemes, though many expect enforcement to escalate with more custody sentences in future cases.
What to Watch Next
- Will other market makers involved in the October 2024 charges face harsher penalties? Gotbit, ZM Quant, and CLS Global are still pending.
- Watch for exchanges to tighten volume reporting standards after this case, potentially impacting token liquidity metrics.
- The FBI’s use of a fake token may inspire more creative undercover operations in crypto.
This article is for informational purposes only and does not constitute financial advice.
Always late to trends?
Join for the latest news, insights & more.
Disclaimer: Bytewit is an independent media outlet that delivers news, research, and data.
© 2026 Bytewit. All Rights Reserved. This article is for informational purposes only.
