Crypto CEO Faces US Extradition Over Alleged $20 Million Token Scheme

In brief

• A UK judge rejected Manpreet Kohli’s extradition challenge and sent the case to British ministers.
• Prosecutors allege Saitama executives used coordinated purchases and paid market makers to inflate the token’s activity.
• Kohli remains free on £200,000 bail and can appeal. He has not been convicted.

A British judge has rejected former Saitama CEO Manpreet Kohli’s bid to avoid extradition to the United States, where he faces charges tied to an alleged crypto market-manipulation scheme.

According to a report by Reuters, Judge Samuel Goozee rejected Kohli’s challenge on August 19 and sent the case to the U.K. government for a decision on the U.S. extradition request. Kohli can appeal the ruling, so his extradition is not yet final, and he remains free on £200,000, about $272,400, bail.

U.S. prosecutors have charged Kohli with wire fraud, market manipulation, related conspiracy offenses, and operating an unlicensed money-transmitting business. The charges concern Saitama, an Ethereum-based token that once reached a reported market capitalization of $7.5 billion.

Kohli challenged extradition in part by arguing that U.S. authorities could not adequately address his mental health and risk of suicide in custody. Judge Goozee found that safeguards during his transfer and within the U.S. prison system could reduce that risk to an acceptable level.