Liu Zhou, the founder of MyTrade, has pleaded guilty to charges related to market manipulation and wash trading of cryptocurrencies. This comes as part of a broader investigation by the U.S. Department of Justice, which has accused MyTrade, along with other firms including CLS Global, of engaging in practices designed to artificially inflate asset prices through deceptive trading activities. Wash trading involves making it appear as if there is significant interest in an asset by executing buy and sell orders in quick succession, thus misleading investors. Zhou's operation reportedly manipulated client cryptocurrencies across several exchanges, contributing to exaggerated market activity. The Justice Department's charges highlighted that Zhou's firm had boasted about capabilities to artificially boost trading volumes and orchestrate 'pump and dump' schemes. CLS Global has indicated an interest in cooperating with authorities to address any identified regulatory gaps. Zhou's sentencing is anticipated early next year, showcasing a significant crackdown on manipulation in the crypto space.

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