UK Judge Rejects Extradition Challenge for Alleged Saitama Token Manipulator

Extradition Path Clears Legal Hurdle

The walls are closing in on cross-border crypto fraud. According to Reuters, as reported by Decrypt, UK Judge Samuel Goozee rejected Manpreet Kohli’s extradition challenge on August 19, forwarding his case to the British government for final determination on the U.S. request. Kohli, former CEO of Saitama—an Ethereum-based token that once reached a $7.5 billion market capitalization—had argued that U.S. authorities could not adequately safeguard his mental health while in custody, raising concerns about suicide risk. The judge found that transfer safeguards and protections within the U.S. prison system reduced that risk to acceptable levels.

Though this decision is not final, Kohli retains the right to appeal. He currently remains free on £200,000 bail, approximately $272,400. U.S. prosecutors have charged him with wire fraud, market manipulation, conspiracy, and operating an unlicensed money-transmitting business related to the alleged Saitama scheme.

Operation Token Mirrors Targets Coordinated Wash Trading

Kohli’s case forms part of “Operation Token Mirrors,” a Justice Department investigation into alleged fraud and wash trading—coordinated transactions engineered to artificially inflate trading volumes. Announced October 9, 2024, just two days after Kohli’s London arrest, the operation has charged 18 individuals with market manipulation.

Prosecutors allege that Kohli and co-conspirators coordinated token purchases across multiple wallets while compensating firms including ZM Quant and Gotbit to execute wash trades across several exchanges. The scheme depended on deception: executives publicly claimed they held their token positions while privately offloading assets for millions of dollars. Prosecutors say Kohli personally profited approximately $20 million through this arrangement.

The tactic exploits a persistent vulnerability in crypto markets—synthetic volume designed to lure retail investors into illiquid assets. Gotbit, one of the paid facilitators in this ecosystem, subsequently admitted to manipulating token prices and volumes for multiple clients including Saitama. In June 2025, the firm was ordered to forfeit $23 million, and founder Aleksei Andriunin received an eight-month prison sentence.

Boston Court Clears Path to Trial

A separate legal setback for Kohli came earlier this month when a federal judge in Boston rejected his attempt to have the indictment dismissed. Kohli had argued that Saitama could not legally qualify as a security under U.S. law—a defense strategy that has repeatedly failed in similar cases. The ruling removes a major obstacle to prosecution.

The coordinated international response underscores a fundamental shift: regulators and law enforcement increasingly refuse to tolerate the playbook of artificial volume and false market signals that historically evaded punishment in crypto. For market participants, builders, and token projects, the implication is unavoidable—manipulation carries real consequences regardless of geography.

Source: Reuters, via Decrypt. Not financial advice.