The post Crypto’s wash trading problem is ‘far more common’ than investors think, DOJ sting shows appeared on BitcoinEthereumNews.com.

A U.S. enforcement case against alleged crypto market manipulation is once again putting the spotlight on wash trading and the blurry line between market makers and market manipulators. Federal prosecutors in California this week charged 10 individuals tied to firms including Gotbit, Vortex, Antier and Contrarian, accusing them of coordinating trades to inflate token prices and volumes before selling into the artificial demand. The case stemmed from an undercover FBI operation in which agents created their own token to identify firms offering manipulation services. Defendants marketed strategies to boost trading activity that in reality amounted to pump-and-dump schemes and wash trading, leaving evidence that is far more common than expected, crypto experts Jason Fernandes from AdLunam and Stefan Muehlbauer from Certik told CoinDesk via Telegram interviews. “Despite increased enforcement, wash trading continues to be a pervasive issue, particularly among lower-cap tokens and on unregulated exchanges,” Muehlbauer said, while Fernandes stated “it’s far more common than most investors realize.” Gotbit Founder Aleksei Andriunin, included in the recent Department of Justice indictments, pleaded guilty to two counts of wire fraud and conspiracy to commit market manipulation last year, and agreed to forfeit $23 million. U.S. prosecutors described his crimes as a “wide-ranging conspiracy” to manipulate token prices for paying clients. Inflating volumes becomes a shortcut The details of market manipulation exposed by the DOJ are impactful, but the underlying behavior is not. “Wash trading exists because in crypto, liquidity is perception,” said Jason Fernandes, co-founder of AdLunam. “Volume attracts attention, listings and capital, so inflating it becomes a shortcut to relevance.” The mechanics are straightforward: coordinated accounts trade back and forth to simulate demand, often outsourced to market makers paid to create the illusion of organic flow. It is far more common than investors believe or expect, particularly in long-tail tokens and…

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Filed under: News - @ April 2, 2026 11:29 am