Judge Samuel Goozee rejected Saitama CEO Manpreet Kohli's UK extradition challenge on August 19, sending the case to British ministers for the next stage of the extradition process. According to Reuters, the 45-year-old Indian national remains free on £200,000 ($272,420) bail and can appeal the ruling. During the extradition proceedings, Kohli argued that safeguards in the United States would not adequately address the risk that he could take his own life while in custody. Goozee rejected that argument after considering arrangements for Kohli during transit and within the U.S. prison system, stating there are clearly appropriate arrangements in place both during transit and within the prison system in the U.S. "I find there are clearly appropriate arrangements in place both during transit and within the prison system in the U.S. to be able to cope with (Kohli's) mental health and reduce the risk of suicide to an acceptable level," Goozee said in his ruling. If Kohli chooses to contest the decision further, the legal proceedings could continue for several more months, as his extradition remains subject to appeal.
US prosecutors have charged Kohli with wire fraud, market manipulation, conspiring with others, and running an unlicensed money-transmitting business tied to a token that was once valued at $7.5 billion. According to reports, prosecutors allege Kohli made about $20 million through the scheme, where Saitama promoters publicly claimed to hold or buy tokens while privately selling them for profit. The Justice Department alleges that Kohli, along with 17 others, coordinated token purchases across multiple wallets to artificially boost Saitama's trading activity. The group paid market-making firms such as ZM Quant and Gotbit to engage in wash trading across several exchanges, with prosecutors estimating Kohli personally gained roughly $20 million from these sales. On October 9, 2024, just two days after Kohli's arrest in London, the US Department of Justice unveiled charges as part of "Operation Token Mirrors," a broader investigation into crypto fraud and artificially inflated trading volumes.
Under Operation Token Mirrors, undercover FBI agents posed as members of the NexFundAI project and approached market makers about generating trading activity for the token. The agency used a real Ethereum-based token, a project website and other materials as part of the operation. Market makers contacted during the investigation allegedly offered services that could create artificial trading volume through wash trades, where coordinated transactions can make activity appear higher than genuine market demand. In May 2026, renewed attention detailed how FBI agents approached market makers while posing as the team behind NexFundAI, with firms named including Gotbit, MyTrade, CLS Global and ZM Quant. The prosecution claims that wash trading tactics were used to simulate legitimate market activity, misleading investors about demand for the Saitama token.
Gotbit admitted providing wash trading services between 2018 and 2024, manipulating trading volume for client cryptocurrencies including Saitama and Robo Inu. Founder and CEO Aleksei Andriunin was sentenced to eight months in prison in June 2025 after pleading guilty to wire fraud and conspiracy to commit market manipulation. The company was ordered to forfeit $23 million as a result of its manipulation activities. CLS Global faced criminal penalties after admitting to wash trading involving the FBI-created NexFundAI token, with a Boston federal court sentencing the UAE-registered company to pay $428,000 and receiving three years of probation. Attorneys for Kohli did not immediately respond to requests for comment regarding the latest developments.
The SEC separately filed a civil enforcement action in October 2024 against Kohli and other people associated with Saitama, accusing project promoters of making public statements about Saitama while participating in activity intended to manipulate trading in SaitaInu and SaitaRealty. Earlier in August, a Boston federal judge rejected Kohli's separate attempt to have the US indictment dismissed, where his attorneys argued that the Saitama token could not legally be classified as a security under US law. Russell Armand and Maxwell Hernandez, who were also involved with Saitama, later pleaded guilty to criminal charges connected to the government's investigation. The case underlines ongoing scrutiny of how digital assets are promoted, traded, and regulated worldwide, as global authorities ramp up enforcement against schemes that use sophisticated tactics to create the illusion of trading activity.
