UK Judge Denies Extradition Appeal for Crypto CEO in $20 Million Scheme

A UK judge has denied Manpreet Kohli's appeal to avoid extradition to the United States, where he faces charges related to an alleged $20 million token manipulation scheme.

Kohli, former CEO of Saitama, a token built on the Ethereum network, made about $20 million through the alleged scheme, according to prosecutors. They claim Kohli and others coordinated to inflate the token's trading activity through wash trading, which involves buying and selling the same asset repeatedly to create fake demand.

Kohli argued during his extradition hearing that US authorities could not properly manage his mental health needs, citing concerns about his risk of suicide if held in custody. However, Judge Samuel Goozee found that safeguards in place during Kohli's transfer and within the US prison system could reduce this risk to an acceptable level.

Kohli remains free on £200,000 bail and can still appeal the ruling. The case links to a wider 2024 investigation called Operation Token Mirrors, which led to charges against 18 individuals and entities accused of using coordinated token purchases and paid market makers to manipulate prices and volumes on several exchanges.