Crypto CEO Loses UK Extradition Fight Over $20 Million Token Scheme

TLDR

• A UK judge rejected Manpreet Kohli’s challenge against extradition to the United States.
• Kohli faces charges tied to an alleged scheme to manipulate the Saitama token.
• Prosecutors say Kohli made about $20 million from the alleged scheme.
• 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.

A British judge has ruled against former Saitama chief executive Manpreet Kohli in his fight to avoid extradition to the United States.

Judge Samuel Goozee made the decision on August 19. The case now moves to the U.K. government, which will decide whether to approve the U.S. extradition request.

Kohli has not been convicted of any crime. He can still appeal the ruling, so the extradition is not final yet.

He remains free on bail set at £200,000, which is about $272,400.

What Kohli Is Accused Of

U.S. prosecutors have charged Kohli with wire fraud and market manipulation. He also faces related conspiracy charges and a charge for operating an unlicensed money-transmitting business.

The charges focus on Saitama, a token built on the Ethereum network. At its peak, Saitama reportedly reached a market value of $7.5 billion.

Prosecutors allege that Kohli and others coordinated to inflate the token’s trading activity. They claim this was done through paid market makers and repeated trades across multiple wallets.

This kind of activity is known as wash trading. It involves buying and selling the same asset over and over to create the appearance of real demand, when little or none exists.

The Mental Health Argument

During the extradition hearing, Kohli argued that U.S. authorities could not properly manage his mental health needs. He raised concerns about his risk of suicide if held in custody.

Judge Goozee reviewed this argument closely. He found that safeguards in place during Kohli’s transfer, and within the U.S. prison system, could reduce that risk to an acceptable level.

This ruling followed another setback for Kohli earlier this month. A federal judge in Boston rejected his attempt to have the indictment thrown out.

Kohli had argued that the Saitama token should not be treated as a security under U.S. law. The judge did not agree with that argument.

Attorneys for Kohli did not respond to a request for comment.

A Wider Investigation

Kohli’s case is connected to a larger effort by U.S. authorities to crack down on alleged crypto manipulation. On October 9, 2024, just two days after Kohli’s arrest in London, the Justice Department announced charges as part of an investigation called Operation Token Mirrors.

That investigation led to charges against 18 individuals and entities. Prosecutors say the group used coordinated token purchases and paid two firms, ZM Quant and Gotbit, to carry out wash trading on several exchanges.

According to the Justice Department, the executives publicly denied selling their token holdings. At the same time, prosecutors allege they were privately selling for millions of dollars.

Kohli is accused of making around $20 million through the alleged scheme.

One of the firms involved, Gotbit, later admitted to manipulating token prices and volumes for clients, including Saitama. In June 2025, Gotbit was ordered to forfeit $23 million.

The company’s founder, Aleksei Andriunin, was sentenced to eight months in prison as part of that case.

Kohli’s extradition process is ongoing, and no final decision has been made on whether he will be sent to the United States to face trial.

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