⏱ 2 min read
Liu Zhou, a 41-year-old Canadian citizen and Chinese national, was the mastermind behind a wide-ranging conspiracy to manipulate cryptocurrency markets in Boston. As the founder and primary operator of MyTrade, a financial services firm, Zhou provided clients with a service that allowed them to artificially inflate the trading volume or price of their assets through wash trading. This form of fraud, which involves buying and selling the same asset repeatedly, was used to stimulate interest in the assets and was carried out through MyTrade’s online application, MyTrade MM. In October 2024, Zhou was charged and pleaded guilty to conspiracy to commit market manipulation and wire fraud.
MyTrade MM’s services included a dashboard that allowed clients to specify the desired amount of daily wash trades, which were then generated by computer programs known as ‘bots’. The company’s unlawful activities were uncovered through an undercover law enforcement operation, which included the creation of a fake cryptocurrency company called NexFundAI. Zhou was caught discussing the details of MyTrade MM’s services with purported promoters of NexFundAI, including how the company ‘does self-trades – a buy and a sell in the same sec’.
Zhou’s sentence, handed down by U.S. District Court Judge Angel Kelley, included a fine of $10,000. The case highlights the growing problem of cryptocurrency market manipulation and the need for law enforcement to stay one step ahead of those seeking to exploit the system for their own gain.
The use of wash trading and other forms of market manipulation can have serious consequences for investors and the wider cryptocurrency market. By artificially inflating the price or trading volume of an asset, scammers can create a false sense of demand and convince others to invest in the asset, only to withdraw their own funds and leave the investors with significant losses.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Massachusetts
- Location: MA
- Source: DOJ Press Release
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