A British judge has refused former Saitama CEO Manpreet Kohli’s effort to block extradition to the United States, clearing the way for him to face criminal charges linked to an alleged crypto market-manipulation scheme.

U.S. prosecutors accuse Kohli of wire fraud, market manipulation, conspiracy offenses, and running an unlicensed money-transmitting business in connection with Saitama, an Ethereum-based token that at one point reportedly reached a market capitalization of $7.5 billion.

Court rejects mental health argument

Kohli’s challenge to extradition partly centered on his mental health and the risk of suicide if he were sent to U.S. custody. He argued that American authorities would not be able to manage those risks adequately.

Judge Goozee rejected that position, finding that protections during Kohli’s transfer and measures available within the U.S. prison system were sufficient to reduce the risk to an acceptable level. The ruling means the extradition process can move forward despite those objections.

US case focuses on alleged token manipulation

The U.S. case alleges that Kohli was involved in a broader scheme tied to Saitama’s trading activity and executive token sales. Prosecutors say 18 individuals, including Kohli, coordinated token purchases through multiple wallets and paid market-making firms ZM Quant and Gotbit to carry out wash trading on several exchanges.

According to the Justice Department, the activity was designed to manipulate trading volumes and market conditions. Prosecutors also allege that while executives publicly denied they were selling their own holdings, they were in fact privately offloading tokens for millions of dollars. They say Kohli personally made about $20 million.

Parallel setback in Boston

The UK ruling follows another loss for Kohli in the United States earlier this month. In Boston, a federal judge denied his bid to dismiss the indictment.

Kohli had argued that Saitama could not legally be treated as a security under U.S. law. The judge declined to throw out the case on that basis, allowing the prosecution to continue.

Gotbit case adds broader context

Part of the government’s allegations overlaps with conduct already addressed in a separate case involving Gotbit, one of the firms prosecutors say was paid to wash trade Saitama. Gotbit later admitted to manipulating token prices and volumes for clients that included Saitama.

In June 2025, the company was ordered to forfeit $23 million. Its founder, Aleksei Andriunin, was also sentenced to eight months in prison. With the UK court now rejecting Kohli’s extradition challenge, the next confirmed step is for him to be transferred to the United States to answer the charges there.

Source: decrypt.co