Crypto
Crypto-CEO Faces US Extradition In Crypto Asset Fraud.
Crypto-CEO Faces US Extradition In Crypto Asset Fraud.
The U.S. Securities and Exchange Commission (SEC) has filed fraud charges against three companies and nine individuals implicated in schemes aimed at manipulating the cryptocurrency market. These schemes were designed to distort the markets for several crypto assets that were offered and sold as securities to retail investors. The accused are said to have misled investors by fabricating the illusion of vibrant trading markets for these assets, enticing them to make purchases based on artificially inflated trading volumes and prices.
The SEC summary highlighted that “This action arises from the defendants’ unregistered and fraudulent offers and sales of crypto assets being offered and sold as securities to the investing public and their manipulative trading of those securities.”
Fraudulent Crypto Market Scheme
The complaints filed by the SEC detail that the promoters of crypto assets—Russell Armand, Maxwell Hernandez, Manpreet Singh Kohli, Nam Tran, and Vy Pham—worked in conjunction with three firms, ZM Quant, Gotbit, and CLS Global, which purported to act as market makers. Manpreet Singh Kohli, 43, appeared via video-link at Westminster Magistrates’ Court in London at an early stage of his fight against extradition to the US.
These entities are accused of engaging in activities to manipulate the trading behavior of crypto assets. It is alleged that they offered “market-manipulation-as-a-service” to artificially enhance both the trading volume and price of the crypto assets that the promoters marketed to retail investors through unregistered transactions.
As outlined in the filings of the SEC, ZM Quant and Gotbit, acting on behalf of the promoters, engaged in market manipulation by creating artificial trading volume through self-trading, commonly known as wash trading. This practice entails the buying and selling of the same asset to fabricate the appearance of market activity.
The SEC further asserted that CLS Global executed a comparable scheme concerning another cryptocurrency developed under the supervision of the Federal Bureau of Investigation (FBI) as part of a distinct investigation into manipulation within the crypto asset market.
The SEC indicated that these deceptive practices misled retail investors into believing that the crypto assets were experiencing active trading and exhibited significant market demand, when, in fact, the trading activity was contrived and lacked any genuine economic purpose. In certain cases, the defendants utilized algorithms or trading bots that generated an enormous volume of transactions, resulting in up to quadrillions of transactions and billions of dollars in artificial trading volume daily on major cryptocurrency trading platforms.
Related: Granbury residents sue Marathon Digital Holdings over noise from crypto mine
SEC Statement
The actions taken by the SEC are designed to ensure that those responsible for fraudulent activities are held accountable, particularly as these schemes have reportedly victimized retail investors by luring them with misleading promises of profitability in the unpredictable cryptocurrency markets. Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement, underscored the importance of these charges, stating: “Today’s enforcement actions reaffirm that retail investors are being exploited by fraudulent practices perpetrated by institutional players in the crypto asset markets.
With so-called promoters and self-proclaimed market makers collaborating to mislead the investing public with false profit assurances, investors must remain vigilant, as the odds may be stacked against them.”
The SEC has raised alarms regarding the increasing susceptibility of the crypto asset market to manipulation, particularly as these assets are continuously marketed and sold to the public as securities. Jorge G. Tenreiro, Acting Chief of the Division of Enforcement’s Crypto Asset and Cyber Unit (CACU), voiced his concerns regarding the extent of the deception: “The individuals behind these fraudulent schemes are reaping substantial profits at the cost of investors who have been misled into these markets, resulting in the loss of their hard-earned savings. We are dedicated to identifying and addressing such misconduct, especially when it pertains to securities.”
Legal Action and Charges
The five complaints filed by the SEC were submitted to the United States District Court for the District of Massachusetts. These complaints allege that all defendants have breached the antifraud and market manipulation provisions of U.S. securities laws, with some defendants also accused of failing to meet registration requirements.
- The SEC is pursuing various forms of relief in these matters, which include:
- Permanent injunctions to prevent the defendants from further violations of securities laws.
- Conduct-based injunctions to restrict specific actions related to market manipulation.
- Disgorgement of illicit profits, along with interest, to recover earnings obtained through unlawful activities.
- Civil penalties aimed at deterring future infractions.
Bars against certain officers and directors to prevent them from holding leadership roles in any companies regulated by the SEC.
In a notable development, three principal defendants — Armand, Hernandez, and Pham — have consented to settle the charges through bifurcated settlements. This settlement, which awaits court approval, would impose a permanent injunction against them for any further violations of federal securities laws and enforce conduct-based injunctions. Moreover, they would be prohibited from serving as officers or directors of any public companies. The court will subsequently determine the final amounts for disgorgement, prejudgment interest, and civil penalties applicable to these defendants.
Related: Legal Strategies for Mitigating Risks in Cryptocurrency Investments
FBI and Criminal Actions
In a concurrent criminal investigation, the Federal Bureau of Investigation (FBI) and the United States Attorney’s Office for the District of Massachusetts have initiated actions against the individuals implicated in these fraudulent activities. The Securities and Exchange Commission (SEC) has commended the collaboration among agencies, which has facilitated both civil and criminal actions against the offenders.
These cases exemplify a comprehensive approach by regulatory and law enforcement bodies to combat market manipulation within the increasingly popular and occasionally volatile realm of cryptocurrency assets. As the SEC persists in its efforts to monitor and investigate fraudulent practices in the cryptocurrency sector, these enforcement actions serve as a cautionary message to potential manipulators that their conduct will be scrutinized and met with consequences. Investors are advised to exercise vigilance and conduct thorough research on cryptocurrency market offerings prior to investing their funds.
Related: FTX Founder and Celebrity Backers Sued Amid Crypto Collapse
Crypto
Is Cryptocurrency a Legitimate Part of a Long-Term Investment Portfolio?
Key Points
-
Most experts consider crypto to be a legitimate asset class.
-
That doesn’t mean every asset in the class is equally legitimate or worthwhile.
Just a few years ago, many financial advisors wouldn’t touch crypto. That era is now over; according to a 2026 survey conducted by Bitwise, an asset manager, 32% of the financial advisors they polled allocated crypto in client accounts in 2025, and 99% planned to maintain or increase their exposure.
But crypto isn’t a monolith, and not all crypto assets are equally legitimate as part of a long-term portfolio, so let’s take a look at what’s legitimate and sort it from what’s sketchy.
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An investor stands in an office while looking out a window and holding a clipboard with some documents.
Image source: Getty Images.
The professionals have spoken
Among professional investment advisors who allocate on behalf of their clients, 83% keep their exposure under 5%, with an allocation of 2% as a starting point. The takeaway is that the relatively new legitimacy of crypto as an asset class is not an excuse to let it become your entire portfolio.
But which assets are the most widely accepted?
The answer to that question is Bitcoin, (CRYPTO: BTC) as it has the deepest liquidity in crypto and the biggest regulated vehicles for investment, like spot Bitcoin exchange-traded funds (ETFs). Ethereum and Solana are also generally endorsed as legitimate investments, with each backed by spot ETFs and growing institutional interest.
But below those three, professional interest drops off fast, and for most investors, yours should too.
Where to draw the line
Bitcoin, Ethereum, and Solana share traits that earn them a place in long-term investment portfolios. Smaller altcoins, ecosystem tokens, and meme coins generally do not have those traits, and you probably shouldn’t be investing in them heavily, if at all.
Volatility alone doesn’t disqualify an asset or make it illegitimate. The disqualifier for those smaller tokens is most typically their lack of a strong investment thesis.
So if you’re considering an investment in crypto, keep it fairly small, anchor it in Bitcoin, and avoid speculative tokens.
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Alex Carchidi has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Crypto
OKX Invests in Vietnam Exchange CAEX Ahead of Crypto Pilot
Key Takeaways
- OKX invested in CAEX to meet Vietnam’s $380 million pilot requirement, advancing regulation.
- CAEX, backed by OKX and Hashkey, signals a shift to compliant platforms across Southeast Asia.
- OKX expands 2026 regulatory push after Malta license, as it aims to lead efforts in shaping Vietnam’s crypto market.
Vietnam’s CAEX Gains OKX Support for Regulated Crypto Push
OKX has taken a strategic stake in Vietnam’s CAEX exchange, positioning itself to support the country’s push toward regulated cryptocurrency trading.
The investment, made alongside local partners including VPBank Securities and LynkiD, as well as Hashkey Capital, will help CAEX meet the financial threshold required to participate in a government-backed pilot program. Vietnam has set a minimum capital requirement of $380 million (VND 10 trillion) for firms seeking to operate within the trial framework.
The partnership signals a growing alignment between global crypto firms and local operators as Southeast Asia moves toward clearer regulatory oversight.
Star Xu, Founder and CEO of OKX, wrote in a blog post, saying,
We expect most Southeast Asian markets to establish clear regulatory frameworks and licensing pathways for digital asset companies. This region is already one of the most important sources of global crypto liquidity. We believe the future of crypto will be built on regulated, local platforms that users can trust, and CAEX represents that future in Vietnam.”
CAEX, formally known as Vietnam Prosperity Crypto Asset Exchange Joint Stock Company, is expected to combine domestic market expertise with international infrastructure and compliance standards. OKX said it will contribute not only capital but also technical support across areas such as risk management, security systems, and liquidity provision.
The initiative comes as Vietnam explores a controlled rollout of digital asset trading under government supervision. While details of the pilot program remain limited, authorities have indicated a preference for well-capitalized and compliant platforms.
OKX’s involvement reflects its broader strategy of working within regulatory frameworks rather than operating outside them. The company has spent recent years securing licenses and approvals in multiple jurisdictions, including registration in the United States and regulated operations across Europe.
Earlier this year, OKX obtained a Payment Institution license in Malta, allowing it to expand crypto payment services across the European Union under established regulatory regimes. The exchange has also pursued approvals in markets such as Singapore and Dubai, where it has built localized platforms tailored to regulatory requirements.
Executives at OKX have framed compliance as central to long-term growth. The firm has increased investment in anti-money laundering controls, customer verification processes, and internal risk systems, aiming to meet institutional standards as the industry matures.
That experience is now being applied to emerging markets. In Vietnam, the focus is on building a platform that can operate within a formal regulatory structure while scaling user adoption.
The investment also reflects a broader shift in the crypto industry. As governments introduce clearer rules, trading activity is increasingly moving toward licensed venues. Market participants are placing greater emphasis on transparency, asset protection, and regulatory oversight.
Southeast Asia remains a key region in that transition, accounting for a significant share of global crypto liquidity. For Vietnam, the CAEX initiative represents an early step in that process. For OKX and its partners, it offers an opportunity to shape the development of a regulated market from the ground up.
If successful, the model could serve as a blueprint for other countries in the region, where demand for digital assets continues to grow alongside calls for stronger investor protections.
Crypto
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