Crypto Wash Trader Gets Off Easy with $10,000 Fine

Liu Zhou, founder of crypto market-making firm MyTrade, was sentenced in US District Court in Boston for conspiracy to commit market manipulation and wire fraud. He received a $10,000 fine and a court order to shut down his wash trading bots that powered his business model.

The bots executed simultaneous buy and sell orders on the same token, creating an illusion of real market activity where none existed. MyTrade openly advertised tools for wash trading and pump-and-dump schemes, making garbage tokens look like they had genuine investor interest.

Zhou operated between China and Canada while running these operations, managing one of three primary market makers involved in illicit trading schemes uncovered during the investigation.